Over the Counter (OTC) Capital is a trading platform for unlisted companies to raise up to S$5 million in 12 months. 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.
- Phillip Securities Pte Ltd is not operating a market by operating OTC Capital and is not an approved exchange or regulated market operator pursuant to Section 6, Securities and Futures Act.
Who can use OTC Capital to raise funds?
- OTC Capital is only for companies that are incorporated in Singapore.
- Any company that wishes to use OTC Capital would have to meet the OTC Admission Requirements.
Typically, OTC Capital is suitable for companies with:
- High growth potential
- Strong management team
- Committed strategic investors
How Much A Company Raise Using OTC Capital
- A company can raise a maximum of S$5 million in 12 months.
Who Buys/Trades Shares on OTC Capital
- Those investors who have registered with OTC Capital and opened a trading account with Phillip Securities Pte Ltd would be able to buy or trade on OTC Capital.
- Investors would 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.
Why to 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$350,000,which is a fraction of an IPO listing fee as there is no need to spend money creating a prospectus.
Where to Find Information
The information can be found on the OTC Capital website. OTC Capital ("OTC") is a market making trading platform for the securities of unlisted Singapore companies. It facilitates companies to raise new capital in a relatively cost-effective manner and allows the trading of the securities between registered OTC investors with Phillip Securities Pte Ltd ("PSPL") as the market maker.