In a $117 million (S$158 million) reverse takeover (RTO) deal, brokerage and social trading platform ayondo will be listed on the Singapore Exchange (SGX) after finalizing an agreement with Starland Holdings, a Singapore-based property developer.
A reverse takeover occurs when a private company acquires a public company in order to bypass the complicated IPO process. Frankfurt-based ayondo stated that it opted for a reverse takeover because of “volatility in financial markets.” The company’s press release says, “In such market conditions, an RTO provides greater certainty as key terms such as funds raised and valuation are agreed between buyer and seller, and not necessarily subject to prevailing market conditions as is always the case in an IPO. The RTO route also offers ayondo other advantages, such as lower listing costs.”
Starland anticipates the deal will help the company “expand its business in line with its diversification strategy into the fintech business” and will offer “more consistent and sustainable financial growth.” The purchase will be completed through the issuance of new shares of Starland. The finalization of the takeover is conditional, pending approval of shareholders.
ayondo debuts ayondo 3.0 at FinovateEurope 2013 in London
ayondo was founded in 2008 with a mission to revolutionize retail trading. The company’s brokerage platform lets users copy the moves of top traders to optimize returns. At FinovateEurope 2013, ayondo unveiled the newest version of its service, its London brokerage, and a trader career training curriculum. Last month, the company brought on Rick Fulton as CFO.
According to Singapore news site e27, ayondo is the first fintech company (and third tech company) to IPO via the SGX.