Friday, 14 June 2024

Alta and PhillipCapital unveil liquidity programme for Income Insurance shares

5 min read

Alta, one of the leading digital securities exchanges for alternative assets in Southeast Asia, has partnered with PhillipCapital to introduce the Income Insurance Share Liquidity programme - a distinctive liquidity programme for shares of Income Insurance, one of the leading composite insurers in Singapore.

This is the largest listing of a non-listed company on a private securities exchange for institutional and accredited investors to trade and own the shares of a non-publicly listed company.

Alta’s exchange arm, AltaX, together with Phillip Securities, a subsidiary of PhillipCapital and member firm of AltaX, have built a unique solution to facilitate the sale of unlisted Income Insurance shares through financial markets. The Income Insurance Share Liquidity Programme will leverage PhillipCapital’s expansive investor network to provide straightforward, guided procedures to monetise Income Insurance shares. With the nationwide coverage and footprint of PhillipCapital Investor Centres throughout Singapore, selling shares of Income Insurance becomes a seamless and user-friendly experience.

Shares of Income Insurance listed on AltaX will be available for trading by AltaX’s extended network of global institutional and accredited investors. This member-driven exchange model provides an avenue for member brokerages and their investors to invest and trade the shares of an established insurance provider in Singapore and in the broader ASEAN region. These shares can be tokenised on AltaX’s blockchain-powered exchange, and introduces a new dimension to trading for these investors, representing a significant leap forward in the way digital assets are traditionally owned by investors globally.

Kelvin Lee, CEO of Alta said: “Monetisation of shares for unlisted companies is usually tedious and time-consuming. We have been continuously innovating and improving this process for the past few years and I am glad we were finally able to partner with PhillipCapital to launch an ongoing liquidity solution for public non-listed companies like Income Insurance, and to make the trading of those shares available to institutional and accredited investors. At Alta, we are committed to building essential capital market infrastructure that facilitates access and liquidity for private companies which are the backbone of our economies. We recognise that our role in building critical private market infrastructure goes beyond facilitating trades; it paves the way for entrepreneurship, job creation, financial inclusion, and economic resilience, fostering a brighter future for all.”

Investors are increasingly demanding for innovative and adaptable solutions to invest and trade in private markets, particularly as companies opt to remain privately held for extended periods. This has made the anticipation of a liquidity event for employees and investors of private firms a prolonged process. However, by combining the swiftness of fintech with the reliability of established financial institutions, Alta and PhillipCapital’s transformative approach is revolutionising the dynamics of private equity liquidity.

Earlier this month, Alta bolstered the reach of its exchange arm by welcoming new member firms, including Evolve Capital Advisory in Singapore, Hong Kong brokerage firm Quam Securities as well as asset management firms Rockpool and Cachet, both based in Hong Kong. Onboarding new member firms not only broadened the scope of Alta’s investment opportunities but also integrated new networks of investors from across the globe. In 2023, the exchange witnessed substantial activity, with bid and ask orders accumulating to an impressive sum exceeding $195 billion. This brings the total member firms trading on AltaX to 8. In comparison, the NYSE began trading with 27 member firms.

Luke Lim, managing director, Phillip Securities added: “We have a long-standing relationship with Alta and we are excited to collaborate with them to develop a liquidity solution that combines our extensive suite of investor solutions with Alta’s next-generation digital exchange. The partnership empowers our clients to seize opportunities and respond to changing market conditions with unprecedented ease. This is in line with our shared vision of revolutionising capital markets and marks a significant step forward in achieving this goal.”

Jerry Chua, CEO and managing partner at Evolve, expressed enthusiasm, stating: "We are thrilled to present a liquidity solution for the shareholders of one of Singapore's most esteemed, reliable, and forward-thinking companies. This marks a new era where private exchanges mature and are poised to offer solutions for a broader spectrum of private companies."

Evolve, a boutique investment bank is set to provide market-making services on Alta Exchange. This initiative is aimed at boosting the liquidity of private market trades.

Founded in 1970 to address a societal demand for insurance in Singapore, Income Insurance has evolved from an insurance cooperative to a public non-listed company since September 2022. It stands as one of the prominent composite insurers in the country, providing a range of insurance products, including life, health, and general insurance. Notably, the company remains unlisted on any public exchange.

Re-disseminated by The Asian Banker

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