18 January 2018P Sivakumar, K AshwiniThere are several advantages to listing a company. Firstly, listed companies benefit from access to increased capital and cheaper sources of capital as compared to traditional bank financing. Initial Public Offerings (“IPOs”) can raise funds for the company for growth, capital expenditure, strategic acquisition as well as to reduce existing debts. Modes of raising capital include share placements and rights issue.
The prestige that comes with the listing of a company is yet another advantage. Brand perception of the company may be improved among customers and suppliers, and listing is indicative of the rigorous corporate governance of a company. But what makes Singapore attractive to companies that wish to list here? Singapore is known for its strong rule of law which has resulted in economic growth and prosperity. There is a sense of confidence within the business community and many listed companies in Singapore have benefited from this stability. Today, the biggest challenge for any company looking to enter into the international market is political instability. For instance, Brexit and the withdrawal of the United States of America from the Trans-Pacific Partnership (“TPP”) have created interruptions to business plans and trade negotiations around the world. A country with strong political stability is ideal, so that the companies that conduct their business there can be assured of continued economic growth. Further, Singapore’s corporate governance standards are one of the best in the South East Asian (“SEA”) region and its transparent and responsive regulatory regime is well regarded by investors and issuers alike. Singapore is known for being an international hub for business. According to the World Bank’s “Doing Business 2012” report, the nation was ranked as the easiest place in the world to do business for the sixth year running, and this is attested to by the wide-ranging businesses which have based their operations here. Singapore is also uniquely positioned as a springboard for companies seeking business opportunities and wanting to enter into the SEA region. Being an international hub for business, any company who chooses to list in Singapore will benefit from access to a host of institutional investors. Most importantly, the fund-raising process in Singapore is fuss-free, quick and efficient which provides certainty to any company wishing to list in Singapore. P Sivakumar Director, BR Law Corporation [email protected] K Ashwini Associate, BR Law Corporation [email protected] Post date. Edit this to change the date post was posted. Does not show up on published site. 18/1/2018 |
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