Source of article: The Straits Times (Print)

Corporates have in recent years been turning to alternative markets to raise funds, demonstrating a gradual but perceptible shift from the traditional IPOs and stock exchange listings, a market development that I would describe as the “uberization” of the stock exchange.

A public offering of securities to raise funds and a stock exchange listing comes with a full suite of continuing legal and regulatory compliance requirements, and with the attendant civil and criminal legal consequences for directors and senior management in the event of any breach. For a number of years, the Singapore market has attracted few listings (other than REITS) due to low liquidity and low valuations that make the costs of embarking and maintaining a public listing comparatively unattractive vis-a-vis the benefits. There has in fact been a number of de-listings from the Singapore market in recent years. Alternative markets fill the need for external financing that has been enabling a number of corporates with solid fundamentals and good prospects to spring-board to greater heights without the continuous regulatory compliance that is perceived to be more onerous in recent years.

I thank the media to seek comments. My original LinkedIn post is here.