Capital market transactions

Navigating today’s increasing complexity of capital markets transactions

Tham Tuck Seng
Capital Markets Leader
Tel: +65 9618 3776
Email

Tapping into the capital market, whether through an initial public offering (IPO) or via a merger with a special purpose acquisition company (SPAC), or by obtaining green and sustainable financing through schemes announced by the Monetary Authority of Singapore (MAS), can transform the way a company operates. Choosing the right financing is the runway to ongoing success, though the path is increasingly complex.

Whether the ultimate choice is through an IPO, SPAC, or direct listing, companies need to objectively assess their readiness for life as a public company. Upon a successful listing, management must be prepared to address increasingly stringent compliance and regulatory requirements, operational effectiveness, risk management, periodic reporting and investor relations.

Common issues companies face when going public

IPO preparation pitfalls

Not enough IPO preparation
Not ready to meet investors and poor first impressions
Necessary financial and non-financial information is not available or robust
Equity story is not underpinned by the financials and not ready for due diligence
Banks will not be able to help in significant areas of IPO preparations (e.g. transformation, data room, financial information)

IPO execution pitfalls

IPOs are complex in execution and take a lot of time over a protracted period
Lack of coordination with multiple parties involved / specialist rules and regulations
Distraction of top management and possible neglect of the day job
Management not familiar with IPO process
Not enough resources and bandwidth for multiple processes

Post-IPO pitfalls

Disappointing first post-IPO results
Poor investor disclosure
Insufficient investor calendar
Lack of communication around financial goals and strategy
Poor coverage of top investor accounts at the results roadshows
Regulatory financial disclosure requirements are not met
After the IPO, the banks and lawyers will not be around to support you

A deeper look into fund raising options

IPO

An IPO is a cornerstone event for an organisation, and preparation for “being public” is just as important...

SPAC

SPACs continue to gain popularity as a potential liquidity option for many companies. This method allows...

Sustainable financing

Integrating environmental, social and governance (ESG) in corporate strategy continues to take priority...

Utilising our technology-driven solutions combined with our expertise in transformation and project management, our Capital Markets professionals will work with you to unlock the value of your business at every phase.