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OTC Capital is currently Singapore’s only market making trading platform for shares of unlisted Singapore public companies.
It helps companies with growth prospects to raise up to SGD5m ( in aggregate) within any 12-month period in a relatively
cost-effective manner; and allows the trading of UNLISTED securities amongst OTC investors who are registered with
Phillip Securities.
Benefits of investing in an OTC quoted company
Benefits to Investors
Investing in a relatively high growth potential private equity type of securities gives opportunity for investors to attain higher potential
returns on their investments. Typically, the investment horizon could range from 3 to 5 years. Investors with the patience and foresight
to spot emerging companies could be well rewarded on their investment as the companies that quote on OTC trading platform may take a view
of wanting to be listed on the exchange or be sold at a premium in a trade sale arrangement. In addition, unlike an exchange,
there is also no minimum lot size for investors to invest. OTC provides investors a unique opportunity to invest a portion
of your investment portfolio in this investment class.
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Risks
The risks associated with investing in OTC securities are typically higher than that of a listed security.
They include a higher business risk as companies maybe young and have short business track records.
There is also no guarantee that the company maybe sold or be listed in an exchange. In addition,
companies quoted on OTC are subjected to lower disclosure and reporting requirements compared to an exchange.
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How to begin investing in OTC Securities
At a minimum, investors may start by filling up some questionnaires and open and maintain a Phillip Securities trading account
before you can trade OTC securities. Please note that other requirements may apply if you do not already have a trading account.
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OTC Capital Rules
OTC Capital Rules cover admission process and continuing obligations of companies seeking quotation, already quoted, on OTC.
Click here to download the OTC Rules.
OTC Trading Rules
OTC Trading Rules covers the details of orders, contracts, OTC operation, settlements and brokerage charges.
Please click here to download the OTC Trading Rules.
OTC Investor portal
The OTC Investor Portal is a user-friendly and useful tool for OTC Investors to do in-depth research on the securities they wish to invest in.
To assess information on the portal, investors simply need to fill up a short risk profile questionnaire to register as an OTC Investor.
This includes opening a Trading Account with Phillip Securities.
Click here to find out more.
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