IPO Mandate and Terms


We propose acting as an IPO advisor who takes care of everything from assessing the client's readiness for IPO till IPO itself. We cannot act as the reporting accountant or the IPO underwriter / manager but will bring in all these parties including the lawyer and public relations (PR) consultant. In the recent year, quite a number of new players have entered the IPO market in Singapore. Today, there are more than 10 IPO underwriters / managers and many lawyers and PR consultants to choose from. Due to intense competition, the newer players especially, are keen to take up smaller issues at low fees. Our value add is to bring in a suitable one with substantial "value-for-money" to suit the size, industry and needs of the client. The client therefore does not have to do the "shopping around". If the client chooses to go directly to the merchant banker, it will not get certain services that we provide in our IPO package (listed below) e.g. forming the group corporate structure and bringing in independent directors.

Our IPO package comprises the following services:

Assess company's eligibility and readiness for IPO
If company is not ready, we will recommend IPO Strategy ie. advice on how the business prospects / story line can be improved to better appeal to IPO investors, and set timeline including revenue and net profit targets for IPO

If client is ready for IPO, we will :

  • Form group corporate structure
  • We will recommend which companies to include or exclude in the listing group and form a group corporate structure. The purpose is to show maximum group profit and business prospects, and no conflicts of interest. The exercise will include Share Valuation to ascertain shareholdings among companies in the group.
  • Advice on likely IPO valuation and amount to raise
  • Bring in qualified and experienced Chief Financial Officer (if the client does not have one yet) and advice on the need to beef up the management team to show sufficient middle management and management succession
  • Recommend and bring in board of directors. This is especially important as there is a requirement for independent directors and audit committee members.
  • Recommend and bring in suitable merchant banker, lawyer, reporting accountant and PR consultant for the IPO.


Our fees:

  1. S$10,000 fixed fee, chargeable even if IPO is not successful ; and
  2. IPO cost of around S$840,000 to S$1,120,000 including fees to the merchant banker, lawyer, reporting accountant and PR consultant. The amount will vary according to the size of the company and amount raised at IPO. The table below shows the IPO cost of 2 cases, one a smaller company with net profit after tax (NPAT) of $2 million and the other a bigger company with NPAT of $5 million. The payment schedule for these costs is generally progressive e.g. 30 percent upfront, 50 percent upon submission of prospectus to the stock exchange and the balance 20 percent upon listing.

Generally, only companies with NPAT of at least S$2 million for the last / current financial year would be ready for an IPO in Singapore.

For more services or enquiry, please contact Tan Chin Ren , at Tel: 6533 7393-129 or at tancr@tanchan-cpa.com.