The HGX team
Hg Exchange (HGX), a private exchange licensed and regulated by the Monetary Authority of Singapore, has announced its founding members PhillipCapital, PrimePartners and Fundnel have commenced trading private company shares on it.
The exchange enables its members and their clients, comprising both investors and issuers, to gain global liquidity and access opportunities in funds, high-growth companies and other alternative private assets.
Also Read: Fundnel launches private investment marketplace in Malaysia
Through a consortium strategy, HGX automatically unites 500,000 investors online. As per a statement, this will spur a synergistic effect for all parties by increasing deal velocity in a timely, cost-efficient manner and introducing liquidity to the ecosystem.
In addition to this announcement, HGX has also appointed Richard Teng, former Chief Regulatory Officer of the Singapore Exchange, as its Chairman.
“Private capital markets have been steadily gathering momentum in deal volume and the vibrancy in activities surpasses its public counterparts. We are harnessing our strength to further transform the ecosystem by offering the market with greater liquidity options,” said Teng.
“As we continue to welcome more renowned financial institutions to join us as members, with each bringing a pool of buyers and sellers, HGX’s world-class platform will assist stakeholders in overcoming problems associated with illiquid assets,” he added.
Leveraging blockchain
HGX is also allowed to list and trade both digital and non-digital Capital Market Products (CMPs), giving investors and issuers the freedom of choice.
It leverages advanced blockchain technology to digitise assets for unrivalled efficiency, which brings forth the possibility of trading in smaller lots at a fraction of the charges associated with a public listing.
This, in turn, benefits issuers who seek partial liquidity or own a limited amount of shares, including employees of private companies with equity, gained via Employee Share Option (ESOP) or Employee Share Ownership (ESOW) plans.
Also Read: Forward looking and flexible: How Singapore is setting the stage for digital asset innovation
HGX offers the full spectrum of services, including on-boarding, verification and custodising of securities, to facilitate digital transactions.
Additionally, the one-off procedure, via the blockchain, allows investors to conduct subsequent sale of the same lot, through HGX, with ease.
Non-digital trading options are available to buyers and sellers making their first foray into this realm of digitised securities. The blend of established trading practices with disruptive technology paves the way for a bespoke investment solution.
As more companies delay their IPOs, opportunities are abound in the private capital markets. However, there are high barriers to entry for new participants. Apart from lack of access, interested parties are also confronted with information asymmetry.
HGX eliminates these barriers by equipping investors with information and perspectives.
—
Image Credit: HGX
The post PrimePartners, Fundnel commence trading private company shares on Hg Exchange appeared first on e27.