A Reverse Takeover (RTO) is a financial strategy where a private company acquires a publicly listed company. This process allows the private company to become publicly traded without going through the traditional initial public offering (IPO) process. In the context of your mention of the Singapore Exchange (SGX), this refers to a private company taking over a listed company on the SGX to gain public listing.

Here's a breakdown of the process and considerations involved in a Reverse Takeover:

Private Company's Motivation:

Private companies may pursue an RTO for various reasons, including quicker access to the public capital markets, enhanced visibility, and increased liquidity for existing shareholders.
Identifying a Suitable Publicly Listed Company:

The private company identifies a suitable publicly listed company (often one with low market capitalization and potentially underperforming) on the SGX.
Negotiations and Agreement:

Negotiations take place between the private and public entities. If an agreement is reached, the terms are outlined, including the exchange ratio for shares and the structure of the deal.
Due Diligence:

Both parties conduct due diligence to ensure a thorough understanding of each other's financials, operations, legal status, and other relevant aspects.
Announcement:

Once the deal is finalized, a public announcement is made, disclosing the details of the transaction, including the intended RTO.
Shareholder Approval:

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