The Singapore government has made it possible for local and foreign entrepreneurs set up companies in the country by providing incentives such as tax rebates. The company registration process is pretty straightforward, and there are professionals to guide you through the company incorporation process to ensure it is successful.
Once the company is up and running, you should consider converting it into a public company for it to be listed on Singapore Stock Exchange. One of the benefits of going public is that you will get access to more capital by offering debentures and transferable shares to the public.
Here are expert tips on how to go public and get listed on Singapore Stock Exchange.
Step 1: Due Diligence
Due diligence basically refers to processes that are tailored to analyze and value of your company. It is conducted by a professional accountancy firm registered and licensed in the country and involves a comprehensive review of every aspect of your business. At the end of the process, a value of the company and number of shares are determined.
Step 2: Initial Public Offering (IPO)
People who are interested in the business are given an opportunity to purchase the company shares. The process can be undertaken with the help of a broker through a process referred to as underwriting. Underwriting is an agreement between the company and the broker. By underwriting the company IPO, the broker commits to promote and sell the shares of the company in return for a mutually agreed commission for every share sold.
The IPO listing process consists of two processes: Pre-submission preparation and post-submission approval and listing. Pre-submission preparation can take anywhere between 4-9 months while post-submission approval and listing can take 5-7 weeks depending on the complexity and nature of the company.
Step 3: Appoint Singapore Based Financial Institution as the Lead Manager
You will be required to appoint a Singapore-based financial institution, a merchant bank, or one of the companies registered with SGX to manage the entire IPO launch as the lead manager or sponsor. It is the duty of the lead manager to submit the listing application to SGX and collaborate with the organization on all matters related to the IPO.
Step 4: Hire a Lawyer and Certified Public Accountant
Due to the complexity of the process of converting a private company into a public company, you cannot afford to leave anything to chance. Hire a licensed lawyer to monitor all the legal aspects of the IPO. You also need to have a certified public accountant to help prepare for the IPO launch and conduct all other accounting tasks on your behalf.
Finally, before submitting the listing application; it is recommendable to liaise with SGX to identify issues that could result in delays.