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Listing Services

On most exchanges, one can list a business by way of an IPO (initial public offer), an Introduction or by way of a RTO (reverse take over). One can also list an asset by any of these three methods and by way of an already listed company making an Acquisition.   ACH has done all four methods.

 

There is a kudos, a certain standing, in listing. Regretfully, many see this as a good reason to list. It is not. In economic terms, listing is a form of disintermediation or the ability to access monies directly from the public as opposed to going through a financial intermediary such as a bank. Given this, it is clear that certain businesses; such as businesses that do not need much monies; or businesses that are not attractive to the public; or businesses who have to pay more to the public than to other intermediaries; or businesses who are unable to meet governance expectations of the public, should remain private.

 

Please Click herefor the advantages to a listing from an Asian perspective.

Please Click herefor the disadvantages of a listing.

 

For businesses that can or will benefit from listing, the listing journey can be perilous. It is estimated that more than 50% of all companies that sign listing mandates in Asia, less than half list. The main risks are:

 

  1. Commercial risk being the risk that the company is unable to: a) meet the commercial objectives of a listing such as raising the monies required at the IPO; or b) raise the monies at the price or at a cost desired; or c) achieve adequate liquidity is the post-IPO market thereby closing the door to future capital raisings.

 

For example:

There are companies listed on all exchanges that have languished due to size, distribution policies or their business/business model failing to fire the imagination of investors.

 

  1. Technical risk being the risk that there are severe or unsolvable issues that will prevent the listing professionals from providing a clean opinion or signing off.

 

For example:

Your auditors unwilling to sign off the proposed pro-forma set of consolidated accounts that we will need to create.

 

  1. Regulatory risk being the risk that the listing committee of an exchange will refuse permission or make it very challenging to list on their exchange. The admittance criteria of most Asian exchanges is not based on strict written and disclosure criteria only.

 

ACH is here to reduce these risks. ACH’s success rate exceeds 90%.

 

Please Click herefor an outline of why ACH’s success rate is so high.

Please click on the following links for more details on work that ACH undertakes:

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