Baker McKenzie Wong & Leow has advised private capital platform CapBridge Platform Pte. Ltd. (“CapBridge Platform”) on its successful application to the Monetary Authority of Singapore (MAS) to operate a securities exchange known as 1exchange (“1X”) in Singapore. 1exchange will be among the first regulated private securities exchanges in Singapore.
Together with its associated entity CapBridge Pte. Ltd. ("CapBridge"), 1X aims to catalyse liquidity for private companies, before an exit event such as an initial public offering or a merger & acquisition (M&A) situation. Companies listed on 1X remain private and have greater control and flexibility and lower costs compared to publicly listed firms.
Growth companies, in particular, will be able to tap on the private capital raising environment created by CapBridge and 1X. They include: private operating companies seeking capital, or preparing for liquidity events; late-stage, venture-backed companies with shareholders and employees seeking to monetise their shareholdings; and family-owned businesses seeking to diversify their shareholder base or planning for management transitions.
Baker McKenzie's Asia Pacific Head of Financial Institutions, Stephanie Magnus, who is based in Singapore, led on this matter, and she is supported by local principal Selwyn Lim.
Commenting on this matter, Stephanie Magnus said: "We are honoured to have advised CapBridge Platform on this significant matter, which places it in the forefront of the growing trend of the use of private exchanges for capital raisings. Advising on this matter allows us to bring to bear our deep knowledge of Singapore's business environment, and our extensive industry experience in financial services. The FinTech ecosystem in Singapore has developed by leaps and bounds in recent years and we are excited to be part of this growth story as we work closely with a wide range of FinTech players to navigate this fast-changing landscape."
CapBridge is working with global blockchain technology leader ConsenSys to build a private securities exchange based on the public Ethereum blockchain. Services offered by this private securities exchange will include the listing and trading of security tokens in due course. The Recognised Market Operator (RMO) licence for 1X is effective from 21 November 2018. For more information, companies and investors can visit www.1x.exchange.