ayondo plans to list on the SGX via a Reverse Takeover (RTO)
UK and Germany-based online social trading platform ayondo could be the first fintech company — and third tech company — to be listed on the SGX.
It is currently in advanced negotiations with a SGX-listed company on a Reverse Takeover (RTO) transaction. A RTO transaction allows private companies to bypass complicated IPO processes through acquisition by a public company.
An official press release cited “volatility in financial markets” as the reason for picking the RTO route.
“In such market conditions, an RTO provides greater certainty as key terms such as funds raised and valuation are agreed between buyer and seller, and not necessarily subject to prevailing market conditions as is always the case in an IPO. The RTO route also offers ayondo other advantages, such as lower listing costs,” said the press release.
If the proposed RTO goes through, the consolidated group will have a market capitalisation of S$210 million (US$155 million) with ayondo shareholders owning 75 per cent of the new consolidated group.
The proposed transactions will give ayondo inject a substantial amount of fresh capital into ayondo. The resulting listed entity will also trade under ayondo’s name, and will be fully controlled and managed by ayondo.
It also intends to use net proceeds of this proposed RTO to further grow the existing business by investing in enhanced mobile technology.
ayondo is an online social trading platform that allows retail investors to automatically copy the trades of experts. It currently has 190,000 users from 195 countries.
In July 2014, it opened an office in Singapore with the backing of private equity fund Luminor Capital.
“This maiden fintech listing will be a milestone for Singapore’s equity market and we anticipate that investor participation will be active and sustained. We believe that social trading will be one of the key online financial services platforms of the future and ayondo is well positioned to become one of the global leaders in this field,” said Dr Foo Fatt Kah, co-founder and Managing Director of Luminor Capital.
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