How to List a Company in Singapore

How to List a Company in Singapore

Going public is a huge step for Private Companies to take. And although doing it can help a company to grow, to publicly list a company means it is ready to take the challenges that come along with it, head on. What does it mean to List a Company Publicly?…

What does it mean to List a Company Publicly?

It means that a private company now allows the public to buy shares of stock from their own company. This shares of stock can then be traded in an over-the-counter and stock exchange markets.

Why choose to go Public?

Many of the private companies decide to open their stocks to the public for this reason: they want their money to grow. This money can then be utilized to expand and improve the business.

How Does Company Listing in Singapore Work?

Let’s say you want to expand your fast food restaurant. You want to build another branch on the other part of the country. However, your money is not enough. So you decide to raise money by Public Listing.

Because you cannot issue the stocks yourself, so you ask for an investment bank’s help. The investment bank will then determine your the company’s price, the amount of percentage to be sold, and how much the stocks cost.

Comparing the Private Vs. Public Company

In Singapore Company Registration for Private Company is easy, Even if you’re an offshore company, having your own private company in Singapore can be hassle-free. However, if you plan to go Public, you can do more things. Here are some:

What are the Advantages of Public Listing in Singapore?

  • Raise Money for Capital

It is has been mentioned multiple times in this article, and I am going to mention it again. Companies can acquire money from the public through selling stocks and share from your company. Use this money as capital for your company’s expansion.

  • Find Out Your Shareholder Value

Going Public enables your company to determine the value of your stock on the fair-market-value. An excellent way to determine the ROI (Return of Investment) for the shareholders.

  • Securities as Compensation

You can use securities as compensation for your directors, employees, and officers. This security has a monetary value and is also negotiable.

  • Ease of Access

Selling stocks to the public is a whole lot easier than looking for individuals who are interested in your company’s shares. This process is a lot easier in Singapore because the company itself makes a market where buyers and sellers participate.

  • Reputable Image

People look at Public Companies as someone with a good reputation. This a good thing because people will notice your company, it will attract the attention of the public and potential business partners.

How to Publicly  List a Company in Singapore?

Step #1 – Go Through Due Diligence

Ask for help from Professional Accountants to analyze and value your company. This involves a careful inspection of every area of your business. The basis for the information to be disclosed to the public is based on the due diligence. This is where the value and its equivalent number of shares are given.

Step #2 – The Initial Public Offering (IPO) & Underwriting

After putting a value on your company’s shares, it will then be available to the public. In some cases, Underwriting can occur, it is where an individual, a financial firm, or a bank pledges to sell all the unsold shares and in return, a commision will be given.

Step #3 – Legalities

You will be given an appointed Financial Institution from Singapore. It may either be a:

  • SGX’s Member Company
  • Merchant Banks and Such

This Financial Institution will be the sponsor and lead manager. The lead manager is the one responsible for the submission of the application and all matters involving it. You also need a lawyer to check the listing’s legal aspects and a Certified Public Accountant (CPA) to give your company an initial evaluation on how ready your company is to go public. The CPA will also be responsible for upgrading your company’s management capabilities, as well as the preparation for the launch.

Bonus Tip: Hire excellent company advisors to help you decide in the process of listing.

Final Thoughts:

If you want to list your company to the public, you should be prepared. Go public full of confidence; people may question your decision—don’t fret, stand firm in your decisions.