OTC Capital is a trading platform for unlisted companies to raise up to S$5 million in 12 months.
What is OTC Capital?
Who can use OTC Capital to raise funds?
How much can I raise using OTC Capital?
Who buys/trades shares on OTC Capital?
Why should I use OTC Capital?
Where can I find more information?
What is OTC Capital?
- OTC Capital is a trading platform for unlisted companies to raise funds.
- Unlisted companies put up their shares for sale on OTC Capital. Registered investors may purchase or trade these shares on OTC Capital.
- In other words, OTC Capital is a "private equity market" for unlisted companies and registered investors.
- OTC Capital is managed by Phillip Securities Pte Ltd.
- By operating OTC Capital, Phillip Securities Pte Ltd is not operating a market and is not an approved exchange or regulated market operator pursuant to Section 6, Securities and Futures Act.
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Who can use OTC Capital to raise funds?
- OTC Capital is only for companies that are incorporated in Singapore.
- If you wish to use OTC Capital, you will need to prepare your company to meet the OTC Admission Requirements.
- Typically, OTC Capital is suitable for companies with:
- high growth potential
- strong management team
- committed strategic investors
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How much can I raise using OTC Capital?
- You can raise a maximum of S$5 million in 12 months.
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Who buys/trades shares on OTC Capital?
- Only investors who have registered with OTC Capital and opened a trading account with Phillip Securities Pte Ltd are able to buy or trade on OTC Capital.
- Investors have to be aware and accept the risks involved with investing in OTC Capital securities.
- Investors who invest on OTC Capital securities include angel investors, accredited investors and private equity funds.
- Typically, these investors have high risk tolerance and look forward to a sizeable return with an exit strategy in mind.
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Why should I use OTC Capital?
- OTC Capital is a relatively cost-effective way for small and medium enterprises to raise capital.
- The cost of raising funds through OTC Capital is around S$250,000 - S$350,00 which is a fraction of an IPO listing fee as there is no need to spend money creating a prospectus.
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Where can I find more information?
You can find more information on the OTC Capital website.
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