FREQUENTLY ASKED QUESTIONS
As a publicly listed company (1) you have access to funds worldwide (2) build credibility, better image and brand equity (3) ability to attract more qualified and top talents to your company (4) ability to expand your business due to the perceived image and credibility of a listed company (5) create more jobs for your communities (6) acquire other companies through the stock (7) attract the attention of mutual and hedge funds, market makers and institutional traders (8) reduce the huge burden of having to borrow money from the banks and paying high interest rates each year.
Our plan is to list your company on the OTC 1st. Listing on the OTC offers a less stringent and more affordable route as compared to bigger exchanges such as NASDAQ, NYSE or AMEX. You may opt to list on NASDAQ, NYSE or AMEX at a later stage once your company has grown to a sizeable size and the means to manage the stricter listing compliance of NASDAQ or NYSE. Once your company are listed on the OTC, we could help you to raise the funds and for you to expand your business towards meet the requirements to list on NASDAQ within 1 to 3 years from the date of your OTC listing.
OTC (Over-the-Counter) markets are primarily used to trade bonds, currencies, derivatives and structured products. They can also be used to trade shares or equities, such as the OTCQX, OTCQB, OTCBB and OTC Pink marketplaces. Broker-dealers that operate in the OTC markets in the United States are regulated by the Financial Industry Regulatory Authority (FINRA).
The United States capital markets offer a tremendous opportunity for growth and expansion to startup companies as well as long established companies and especially for international companies that hope to gain access to the International investor capital.
There are many well-known companies started on the OTC before moving to the larger stock exchanges such as NASDAQ and NYSE (New York Stock Exchange): Adidas, Allianz, Danone, Deutsche Bank, Glaxo, Infineon, Nissan, Novartis, Roche, Shiseido, Siemens, Shell, Toyota, Volkswagen, Yamaha.
If your company intends on raising more capital or looking to provide liquidity to your current shareholders, then listing a company on the over-the-counter market is the way to go. The OTC market attracts investors from across the world. It can raise your company profile and funds at the same time.
There are many variables to be considered before anyone can derive on a valuation. The company profile, track records, industry, current and future market conditions etc. A simple guide but certainly not a final one is based on your current profits and multiply them by 10 to 15. Some companies do achieve a much higher valuation based on their business models, current, future potentials etc.