Consider this before IPO

Equity capital markets (ECM)

Prior to a company undertaking an IPO, its stakeholders should understand the implication of being a public listed company (“PLC”) and consider whether being listed is right for the company.

Consider the following:
• Business owners would no longer have total control of a company once it is listed. Certain matters require shareholders’ approval such as remuneration of directors and certain transactions undertaken by PLC.
• A PLC and its directors are held to higher standard of corporate governance.
• A PLC has more publicity than a private company, which may affect its business and reputation positively or negatively.
• Being listed may enhance the public image or credibility of a company.
• A PLC is subject to continuing obligations to comply with the Listing Requirements, failing which penalties may be imposed.
• A PLC incurs higher compliance cost. It needs to engage advisers when undertaking certain corporate exercises and ensure compliance with listing obligations and corporate governance.
• A PLC’s valuation is, to a certain extent, subject to public perception of the value of the PLC, which may not be reflective of the actual value.
• A PLC may become a target for a takeover by a competitor.


This post was first posted on Linkedin on 21 April 2021.

Linkedin Post
Five key steps for legal due diligence

Most lawyers are good at identifying issues, but legal due diligence shouldn’t be limited to merely reviewing documents and identifying issues. Here are my five steps for conducting legal due diligence: 1. Identify the issues based on the scope of legal due diligence as agreed with the clients. 2. Provide recommendations …

Linkedin Post
Begin with the end in mind: Post-completion integration

I once worked on an M&A deal that took more than a year to complete. While the deal was not inherently complex, it dragged on due to delays in finalizing the details of the transaction agreements for reason beyond my control. As the deal involved a larger corporation acquiring a …

Being a Corporate Lawyer: Why I Do What I Do

After years of demanding schedule and juggling simultaneous corporate exercises which take a toll on physical and mental health, it is not surprising that some corporate lawyers experience burnout. Unlike some legal practice areas, the work of a corporate lawyer may not seem immediately impactful or “make a difference” to …