Reverse Take Over or Traditional IPO? The SGX Decision-Maker’s Guide

Reverse Take Over – When companies consider the path to go public on the Singapore Exchange (SGX), a critical choice emerges: whether to pursue a traditional Initial Public Offering (IPO) or opt for a Reverse Takeover (RTO). Both methods have unique merits and challenges, and the decision can significantly shape a company’s future. In this article, we will explore the advantages and disadvantages of both approaches and provide real-world examples of companies that have achieved success through each method on the SGX.

Reverse Take Over – Understanding the Basics

Before we delve into the case studies, it’s important to clarify the fundamental differences between RTOs and traditional IPOs:

Reverse Take Over (RTO): An RTO takes place when a private company acquires a public company already listed on the SGX. This allows the private entity to attain public status without the intricacies and expenses of a traditional IPO.

Traditional IPO: In a traditional IPO, a private company goes public by issuing new shares to the public through an initial offering. The company’s stock is listed and traded on the SGX for the first time.

Reverse Take Over – Successful RTOs on SGX

OUE Lippo Healthcare Ltd

OUE Lippo Healthcare Ltd serves as an excellent example of an RTO success story on the SGX. In 2018, it acquired the listing status of International Healthway Corporation (IHC) through an RTO. This strategic move allowed OUE Lippo Healthcare to broaden its footprint in the healthcare sector and provide high-quality healthcare services across Asia.

Koufu Group Limited

Koufu Group Limited, a renowned food and beverage operator in Singapore, completed an RTO in 2018 by acquiring the listing status of China Food Holdings Limited. This RTO provided Koufu with access to capital, enabling further development of its food court and coffee shop businesses in Singapore and the region.

Successful IPOs on SGX

Raffles Medical Group

Raffles Medical Group, a leading integrated healthcare provider in Asia, achieved a successful IPO on the SGX back in 1997. The IPO raised capital, allowing Raffles Medical Group to expand its medical services and establish a strong presence in Singapore and beyond.

Mapletree Commercial Trust

In 2011, Mapletree Commercial Trust, a real estate investment trust, conducted its IPO on the SGX. It comprises properties such as VivoCity and Mapletree Business City in its portfolio. The IPO served as a means to raise capital and offer investors exposure to high-quality commercial real estate assets.

Reverse Take Over – Factors to Consider

The decision to pursue an RTO or a traditional IPO on the SGX should be made after careful consideration of various factors, including:

• Capital Needs: Evaluate the financial requirements for your company’s growth plans.
• Timing: Consider the urgency of going public and current market conditions.
• Investor Perception: Analyze how investors and stakeholders view both options and their impact on your company’s reputation.
• Regulatory Compliance: Assess your readiness and capacity to meet the regulatory requirements of an IPO.
• Long-term Goals: Determine your company’s long-term strategy and how your chosen method aligns with those goals.

Conclusion

In conclusion, the choice between an RTO and a traditional IPO on the SGX should align with your company’s specific circumstances and objectives. Both methods offer unique benefits, and the choice depends on your company’s distinct needs. The examples of OUE Lippo Healthcare Ltd, Koufu Group Limited, Raffles Medical Group, and Mapletree Commercial Trust illustrate the diverse strategies employed by successful companies on the SGX. Ultimately, the SGX provides a robust platform for raising capital and gaining market exposure, and the right choice between RTO and traditional IPO can set your company on a path to long-term success in the public market.

Navigating the road to growth on the SGX is a critical decision, and with the right strategy and approach, companies can successfully access capital, expand their businesses, and thrive in the dynamic marketplace.

反向收购还是传统首次公开发行？SGX的决策指南

当公司考虑在新加坡交易所（SGX）上市时，一个关键的决策是选择传统的首次公开发行（IPO）还是选择反向收购（RTO）的途径。这两种方法都有独特的优点和挑战，这个决定可能会极大地塑造公司的未来。在本文中，我们将探讨这两种方法的优点和缺点，并提供在SGX上通过这两种方法取得成功的公司的真实案例。

了解基本概念

在深入研究案例之前，有必要澄清RTO和传统IPO之间的基本区别：

反向收购（RTO）： 当一家私人公司收购已在SGX上市的一家公开公司时，就发生了反向收购。这使得私人实体能够获得公开身份，而无需进行传统IPO的复杂程序和费用。

传统IPO： 在传统IPO中，一家私人公司通过首次发行新股票向公众发售股份。该公司的股票首次在SGX上市和交易。

在SGX上成功的反向收购案例

OUE Lippo Healthcare Ltd

OUE Lippo Healthcare Ltd是SGX上成功的RTO案例的一个出色例子。在2018年，该公司通过RTO收购了International Healthway Corporation（IHC）的上市地位。这一战略举措使OUE Lippo Healthcare能够扩大其在医疗保健领域的业务，并在亚洲提供高质量的医疗服务。

Koufu Group Limited

Koufu Group Limited是新加坡著名的餐饮运营商，它在2018年通过收购China Food Holdings Limited的上市地位完成了一项成功的RTO。这次RTO提供了资本，使Koufu能够在新加坡和该地区进一步发展其美食广场和咖啡店业务。

在SGX上成功的IPO案例

Raffles Medical Group

Raffles Medical Group是亚洲领先的综合医疗服务提供商，在1997年成功在SGX上市。该IPO筹集的资本帮助Raffles Medical Group扩大了其医疗服务，建立了在新加坡和其他地区的强大业务。

明地商用信托基金

在2011年，明地商用信托基金，一个房地产投资信托基金，进行了其在SGX上的IPO。该基金包括其投资组合中的VivoCity和Mapletree Business City等物业。这次IPO提供了资本，为投资者提供了高质量的商业房地产资产。

需要考虑的因素

在SGX上选择进行RTO或传统IPO的决定应该经过慎重考虑各种因素，包括公司的资本需求、时机、投资者看法、法规合规性和长期目标。

结论

总之，决定在SGX上进行RTO或传统IPO应该与公司的具体情况和目标相吻合。这两种方法都提供独特的好处，选择取决于公司的独特需求。OUE Lippo Healthcare Ltd、Koufu Group Limited、Raffles Medical Group和Mapletree Commercial Trust的案例说明了在SGX上成功的公司采用了多样化的策略。最终，SGX为筹集资本和获得市场曝光提供了强大的平台，而在RTO和传统IPO之间的正确选择可以使您的公司走上通往公开市场长期成功的道路。

在SGX上实现增长的道路是一个重要的决策，通过正确的策略和方法，公司可以成功地获得资本、扩大业务，并在这个充满活力的市场中茁壮成长。

==================================================================================================

We work with a large well known Singapore law firm.  If you need to engage a Singapore lawyer to advise you on your legal matters, please click here to schedule a complimentary meeting with our lawyers.

我们与新加坡一家大型知名律师事务所合作。如果您需要聘请新加坡律师为您提供建议，请填Google表格安排与我们律师的免费会面。

https://www.SingaporeLegalPractice.com is a corporate law and commercial law educational website headquartered in Singapore which aims to demystify business law and 新加坡商业法 for SME Company Owners, Startup Founders and 新加坡新移民老板。The information provided on this website does not constitute legal advice.  Please obtain specific legal advice from a lawyer before taking any legal action.  Although we try our best to ensure the accuracy of the information on this website, you rely on it at your own risk.  Click here to signup for our newsletter today to be kept updated on the latest legal developments in Singapore.

https://www.SingaporeLegalPractice.com 是一家总部位于新加坡的公司法和商法教育网站，旨在为中小企业主、初创企业创始人和新加坡新移民老板揭开商法和新加坡商业法的神秘面纱。本网站提供的信息不构成法​​律建议。在采取任何法律行动之前，请先咨询律师的具体法律建议。尽管我们尽力确保本网站信息的准确性，但您依赖本网站信息的风险由您自行承担。单击此处订阅我们今天的时事通讯，以了解新加坡最新的法律发展。

==================================================================================================