Reporting Accountant for Initial Public Offering
Going Public on a Stock Exchange
Taking your company public is a major milestone. It positions your company on a higher platform for growth with significant advantages to the company and its shareholders, including the following:
- Access to capital-raising opportunities with a lower cost of capital relative to debt financing to fund growth, capital expenditures, strategic acquisition and reducing existing debts
- Increased corporate transparency and efficiency in the overall operations of the company
- Enhanced company stature of being listed with a major stock exchange with higher levels of brand prestige to attract top talents and open doors to increased business opportunities
- Provides a potential exit strategy and liquidity for investors, owners and employee shareholders
- Potential to achieve higher valuations than private enterprises
Supporting Your IPO from Start to Launch
Transparency in financial reporting, strong corporate governance, robust internal control systems, amongst other major areas, are some of the key requirements to becoming a publicly listed company.
With an experienced team of specialists with a diverse range of skill sets and background, Baker Tilly is poised to help you preempt potential issues in financials, tax, legal issues, internal controls and risk management pre and during the course of the audit. We will work closely with your management team to provide expedient and practical solutions throughout the IPO process.
If your company is ready to embark on a major growth milestone, speak to a Baker Tilly Capital Markets Specialist today to find out how we can support in your listing journey from pre-IPO planning, to IPO advisory and execution.
- Accountant's Report on Historical Financial Information
The company will need to present audited historical financial statements, usually 3 years in accordance with SFRS (I), IFRS or US GAAP. In certain instances, interim financial information may be required.
The Reporting Accountant will opine on the financial statements in the Accountant's Report, combining efficient delivery with insights and practical recommendations.
- Opinion on Pro Forma Financial Information
Pro forma statements of financial position and comprehensive income will be prepared to account for the impacts of certain transactions on the company’s latest financial results and position.
We will provide an opinion on whether these pro forma financial information have been properly compiled on the basis stated, and whether such basis is consistent with the company’s accounting policies.
- Pre-IPO Internal Control
IPO Sponsors are required to perform reasonable inquiries on the listing applicant’s established corporate governance policies and procedures, accounting and management systems, and internal controls. We can assist sponsors in performing an internal control review to determine the listing applicant’s readiness state.
We will act as an independent internal control and corporate governance consultant and provide recommendations on internal control processes and corporate governance structure.
- Memorandum of Audit Observations and Recommendations & Comfort Letter
These are reports addressed to the company and its Sponsor. Memorandum of Audit Observations and Recommendations capture the key findings noted by us during the course of our audit of the financial statements of the company. Our recommendations offered as constructive suggestions for the consideration of the management as part of the ongoing process of enhancing and improving accounting controls, other financial and administrative procedures.
The Reporting Accountant is required to issue a Comfort Letter to comment on whether the matters noted have been adequately addressed by the company.
- Comfort Letter on Prospective Financial Information
Directors are required to issue a statement concerning the company's prospective financial information and the adequacy of its working capital for a post-transaction period of 24 months.
The forecast/projection will typically include:
- Basis of preparation of the projections
- Profit and loss projections
- Cash flow projections
- Balance sheet projections
We will issue a Comfort Letter on these forecast/projections in accordance with the stipulated requirements.
- Agreed Upon Procedures on Offer Document and Comfort Letter
Directors have the legal responsibilities to ensure the integrity and accuracy of the information
disclosed in the offer document.
We will perform verification procedures in accordance with SSRS 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information on the financial and related information included in the offer document. A Comfort Letter will be addressed to the company and its Sponsor on our findings on those procedures performed.
“This IPO was only made possible with the strong support from our sponsor and advisors including our Reporting Accountant Baker Tilly – the professionalism exhibited by Baker Tilly team has been exemplary. Their familiarity with the SGX listing rules and execution efficiency made the listing process a very positive experience.”
Thomas Yeo, Chief Financial Officer
Resources Global Development Limited
SGX List Date: 31 January 2020
“Baker Tilly demonstrated the highest level of professionalism as the Reporting Accountant for our IPO on the Singapore Exchange. We are glad to partner Baker Tilly as ST Group Food Industries Holdings Limited embarks on its strategic business expansions across key geographical markets.”
Saw Tatt Ghee, Executive Chairman and CEO
ST Group Food Industries Holdings Limited
SGX List Date: 3 July 2019
“One of the best decisions we made as a company seeking to go public abroad was to partner Baker Tilly TFW, our reporting accountant in Singapore. In addition to possessing a good grasp of the Catalist rules, Joshua Ong and Sek See Mun were professional, responsive and efficient. Through close collaboration with their counterparts in Malaysia, they provided a seamless review process. More importantly, they understood the nuances of our business and were able to make effective recommendations to help us get listed on the Singapore Exchange.”
Chow Siew Bee, Financial Controller
SGX List Date: 30 June 2017
“We’re extremely pleased to have worked with Baker Tilly TFW as our reporting accountant and would like to extend our special thanks to Mr Joshua Ong and Ms Guo Shuqi. Their familiarity with the SGX listing rules, understanding of the paint aerosols industry and dedication contributed to our successful listing on the SGX.”
Ian Ong, CEO and Executive Director
SGX List Date: 16 January 2017
& Practicer Leader,
Capital Markets & IPO
Sek See Mun