Benefits of being quoted on OTC

1. Cost Effective

Getting quoted on OTC can cost as low as S$150,000 which is just a fraction of the cost of listing on stock exchange.

2. Pricing of shares

Real time prices are available for securities traded on OTC Capital through the services of the market maker. The market makers will hold a small proportion of the quoted companies shares at all times and investors entering and exiting an investment, can do so through the market maker.

3. Access to a pool of pre-qualified investors as well as possibility of investments from Spring Seeds Capital Pte Ltd and Phillip Capital

OTC has a current growing pool of over 3,000 pre-qualified investors. Prospective Issuers can get the opportunity to present their investment proposition to this group of investors during the offer period. Also, there is a possibility of having investments from Spring Seeds Capital Pte Ltd who may co-invest with Phillip Capital or other investors. This is subject to the firm meeting the investment criteria of these potential investors.

4. Efficient quotation process

It would typically take about 3 to 6 months for a company to get quoted from the time they start preparing the small offers document to being quoted on OTC. The time to get quoted could be considerably shortened if the company already has a few anchor investors lined up and if there is no need for re-structuring of the company.

5. Increase company profile

Shares prices quoted on OTC are displayed in Bloomberg and Reuters. Information such as research reports and corporate actions on quoted companies is also readily accessible to pre-qualified investors through the Investor Portal on OTC Capital website.