Many new companies are getting listed via an RTO deal instead of an IPO. What are its pros and cons of a backdoor listing?

There appears to be a dearth of new listings on the Singapore Exchange (SGX). However, IPO numbers alone do not tell the whole story. A constant stream of new companies are trying to get on board — except that they are doing it via the reverse takeover (RTO) route.

Sometimes also called a backdoor listing, what it simply means is listed companies, facing a deterioration of their original business, try to salvage whatever value there is in the listed shell by allowing new controlling shareholders to come in and inject a new business that can hopefully turn the fortunes around.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook