Kuala Lumpur, Malaysia – On October 31, 2023, a remarkable event brought together industry leaders and visionaries. OTC Markets, an U.S. marketplace for international companies seeking to access U.S. investors, hosted an event, aptly named “OTC Markets: Marketplace for International Companies to Access U.S. Investors.” As the first approved OTC Markets premium provider in Asia, Hexcellence Consulting jointly co-hosting and served as the prime sponsor for this occasion, alongside OTC Markets.
▲ Pathways for Companies Aiming to Enter the U.S. Capital Market
The event focused on three essential pathways for companies aiming to enter the U.S. capital market: Cross-trading, Initial Public Offering (IPO), and Reverse Takeover (RTO). Each of these pathways presents distinct opportunities and challenges for international companies looking to access the vast pool of U.S. investors.
Among the notable guests in attendance was OTC Markets’ Head of APAC Business Development, International Corporate Services, Catherine (Chao) Shang. Her presence underscored the significance of the event and the growing importance of the APAC region in the global investment landscape.
Hexcellence Consulting’s Managing Director, Seah Chia Yee, graced the event with his presence, reaffirming the firm’s commitment to providing advisory services for companies seeking to navigate the U.S. capital markets. He was accompanied by the firm’s Partner, Yee Chee Yong, and Dennis Loh Yee Nam, as well as thier core management team.
The event also welcomed representatives from various organizations, including Agape ATP Corp, Call W Berhad, Capitale Ventures Pte Ltd, Emergence Innovative Sdn Bhd, Esente Advisory, Fin8 Corporate Advisory Sdn Bhd, Gemilang Media Utama Sdn Bhd, Hampstead Pergola Capital Limited, Hueck Capital Sdn Bhd, Proneer Global Sdn Bhd, Vcorp Capital Sdn Bhd, WYNCORP Advisory Sdn Bhd, Zul Rafique & Partners, Marcum Asia CPAs LLP, FirstTrust China Ltd., Semenyih Eco Venture Resort & Recreation Sdn. Bhd., Integrated Gaming Platform, CSH Bakery & Confectionery Sdn Bhd, Sierra Pools, MRCB, and Primus Advisory.
▲ OTC Markets’ Head of APAC Business Development, International Corporate Services, Catherine (Chao) Shang
During the event’s opening speech, Ms. Catherine (Chao) Shang, shared insights on the advantages of Cross-Border Trading. She highlighted the cost-effectiveness of making shares publicly tradable in the U.S., with expenses as low as 1% of what an IPO would entail. This approach carries no additional legal risks, compliance burdens, or accounting complexities. Moreover, it enhances company valuation and trading liquidity while expanding the U.S. investor base.
Supporting these insights, data from the Oxford Metric Study provided convincing evidence for companies to explore Cross-Trading on OTC Markets. The study revealed a marked surge in share valuation within the OTC QX market and a substantial uptick in trading volume, both in the U.S. and the companies’ respective home markets. Furthermore, this strategy has proven to broaden the shareholder base and strengthen corporate presence in the U.S.
▲ Managing Partner of Hexcellence Consulting, Seah Chia Yee
Following Ms. Catherine (Chao) Shang’s enlightening speech, Hexcellence Consulting’s Managing Partner, Seah Chia Yee, took the stage to elaborate the processes and challenges associated with two other listing pathways: Initial Public Offering (IPO) and Reverse Takeover (RTO). He also pointed out the main differences between these approaches. Mr. Seah Chia Yee highly recommended Small and Medium Enterprises (SMEs) to consider uplisting to OTCQB and OTCQX. This strategic move can enhance liquidity and boost their visibility to a global investor audience, providing SMEs with a valuable opportunity for growth and success.
As a Southeast Asia consulting firm, our primary objective is to establish valuable connections between local businesses and the global financial market. Nestled in the heart of Southeast Asia, we’ve have witnessed the emergence of numerous promising companies venturing into the international financial arena. With our team of professionals, which includes legal experts, financial advisors, and communication specialists, we are fully confident in our ability to offer comprehensive assistance to these companies. Our mission is to guide them through the processes of listing and fundraising, supporting their growth and success in the global market.
▲ CEO, Director of Marketing & Founding Partner of Esente Advisory, Dr. Darren Wong
▲ Senior Partner of Marcum Asia CPAs LLP, Jason Tang
In the subsequent discussion, Dr. Darren Wong, the CEO, Director of Marketing, and Founding Partner of Esente Advisory, has emphasized the crucial role of investor relations (IR) for publicly listed companies. He made a simple yet essential point: companies that actively engage with their investors tend to see higher stock prices compared to those that don’t prioritize IR. Dr. Wong’s insights highlight how investor relations significantly impacts a company’s overall performance and success.
Next up, Jason Tang, a senior partner at Marcum Asia CPAs LLP, shared important insights about the difficulties companies face when trying to list on U.S. Capital Markets, especially in relation to accounting standards. Mr. Tang explained the complex challenges and problems that businesses encounter when they need to meet the strict U.S. accounting standards. This information sheds light on the crucial financial aspects that companies need to deal with when thinking about listing on these markets.
Overall, this event marks a significant advance in enhancing understanding and access to U.S. capital markets for international companies. It served as an active hub for knowledge exchange, fostering valuable connections and offering invaluable insights to all attendees.