LEAP Market (Current IPO: Baba Eco Group), Welcome Bursa's Third Board!
|
|
 Jun 29 2017, 05:34 PM
Return to original view | Post
#1
|
 
Senior Member
791 posts Joined: Jan 2003  
|
I am curious to the cost of listing on LEAP, any idea?
What is cost for: Advisors/underwriters? Lawyers? IMR? Bursa SC? Printing IM? Miscellaneous costs If one tries to raise say RM10m and listing on LEAP costs RM1m or even RM500k, it is quite a shitty deal no? |
|
|
Jul 15 2017, 03:02 PM
Return to original view | Post
#2
|
|
Senior Member
791 posts Joined: Jan 2003
|
QUOTE(Cubalagi @ Jul 15 2017, 02:25 PM) I dont know about LEAP costing, but if you look at the last ACE Market IPO Intan Bina: Agree, professional fees will be the same for ace/main market. Big difference is from underwriting. If LEAP is going to need similar professional fee, it will not work. IPO proceeds of RM26.76 million RM3.2 million was to pay for listing fees. That is equal to 12% of the funds raised. Means companies are willing to pay that much to be listed.  Then again if you don't need profit track record I'm assuming you don't need accountants. So how much IB willing to charge for information memorandum? Lawyers needed? Co sec, IMR etc? |
|
|
Jul 16 2017, 08:13 AM
Return to original view | IPv6 | Post
#3
|
|
Senior Member
791 posts Joined: Jan 2003
|
QUOTE(Cubalagi @ Jul 15 2017, 08:19 PM) I have no idea how much all these fees are. I was responding to your statement saying that its "quite a shitty deal". Its not. You forget the continuous cost of being listed - monetary and strict guidelines.Using your example, raise RM10 million and pay RM1 million in fees. I bet many SMEs will be willing to take that. The RM10 million is not a loan. No need to pay interest and even the principal back.. ever. Plus you get the benefits of being a "listed company" ... your creditors more confident with u, u can give share options to staff, can raise more capital via rights etc. Only now you have to deal with "minority shareholders". Plus one cannot compare LEAP to the 10% example of funding cost of Main or Ace and think it is still a good deal. It is still not "listed" as it is not accessible to everyone. You are still illiquid and at the mercy of Bursa and SC. My point is that for LEAP, cost has to be much lower, there is no guarantee there will be takers for your IPO and likely no underwriters. Sure you can say you want to raise 10m for 1m cost, but can any SME looking to raise 10m be able to afford to BURN 1m if the thing fails (i.e. no one subscribes or you get only 1m fresh funds)? This post has been edited by CcL: Jul 16 2017, 08:15 AM |
| Change to: |  0.0134sec
 1.15
 6 queries
 GZIP Disabled
Time is now: 17th December 2025 - 01:43 AM |
Quote