Social trading provider and brokerage ayondo has just become the latest company from the industry to get IPO fever. The firm is aiming to become the first FinTech company from the industry to get listed on the Singapore Exchange (SGX).
The prospective move involves a reverse takeover transaction with a combined value of 210 million Singapore dollars with ayondo shareholders owning 75 per cent of the group. This puts the valuation of the company at about $155 million (SG$210 million), including the injection of significant fresh capital. The amount of the new capital injection has not been disclosed.
The Reverse Public Offering (RPO) could be costing ayondo shareholders up to 25 per cent of the firm (depending on the amount of cash), an attestation of the expensive process of filing for an initial public offering (IPO).
The deal is in an advance state of negotiations with a company that is already listed on the SGX. A reverse takeover transaction is in the works and could be completed soon with ayondo retaining full control of the management of the company.
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Ayondo is aiming to continue growing its business in both retail and institutional sectors as it states that it has now over 190,000 users from 195 countries.
The CEO of the ayondo group, Robert Lempka, said: “We are extremely excited about our proposed Singapore listing as this will provide an excellent platform to accelerate growth and brand awareness globally, Asia in particular. The new group will be financially powerful and will enable us to continue to execute our ambitious plans.“
Back in 2014, ayondo received substantial financial backing from Singapore based fund Luminor Capital. The company invested CHF 5.5 million in January that year with further SG$5 million in August.
The co-founder and Managing Director of Luminor Capital Pte. Dr Foo Fatt Kah, added: “This maiden FinTech listing will be a milestone for Singapore’s equity market and we anticipate that investor participation will be active and sustained. We believe that social trading will be one of the key online financial services platforms of the future and ayondo is well positioned to become one of the global leaders in this field.”