[Updated May 2024] Breaking Boundaries: Income Insurance Ventures onto AltaX, Asia's Premier Digital Exchange!

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Alta and Phillip Securities Pte. Ltd (PSPL), Singapore's largest retail broker, as they unveil an exciting milestone: the inaugural trade of shares from Income Insurance Limited (Income Insurance) shareholders.

This groundbreaking initiative marks the commencement of the Income Insurance Share Liquidity Program, a visionary collaboration launched by Alta and PhillipCapital in January 2024. Designed to provide liquidity to nearly 16,000 shareholders holding shares valued at up to S$840 million (US$619 million), this program opens new avenues for investors seeking seamless trading opportunities.

This marks the largest listing of a non-listed company on a private market digital securities exchange.

But how does this liquidity solution innovate the private markets?

Let’s dive into why liquidity matters in private markets, and how this new launched solution changes the game for private market investors.

Why liquidity matters in private markets

Investing in private markets can be incredibly rewarding, but it also comes with its own set of unique challenges. One of the biggest among them is liquidity – or rather, the lack thereof. 

Put simply, when you invest in publicly traded stocks and bonds on exchanges such as NYSE and Nasdaq, selling your holdings is often close to instant; this is not the case when investing in private markets. 

This illiquidity can make it more difficult for investors to sell their stakes or get their invested capital back, leading to uncertainty and risk. However, understanding the challenges and risks associated with private market investments is the first step to addressing them.

Obtaining liquidity in private markets is challenging

Let’s take a look at the challenges of liquidity in private markets and why it is crucial to address these challenges:

1. Limited exit opportunities: One of the main challenges with private markets is the limited exit opportunities. When investors invest in private companies or funds, they typically need to hold the investment for several years before they can realize any returns. This is because private companies often take time to grow and develop before they can be taken public or acquired by a public company. 

Additionally, private equity funds have a fixed investment term, so investors must wait until the fund is sold or liquidated to exit their investment.

2. Valuation of private investments: Unlike public investments, private investments are not regularly valued by the market, and their value may not be easily determined. The lack of price transparency in private markets means that investors may have difficulty determining the fair value of their investments. This can lead to differences in valuation between investors, particularly when there is a lack of information about the performance of private companies or funds.

3. Regulatory and legal challenges: Private securities are subject to restrictions on how they can be marketed and sold, and there may be limitations on who can invest in them. 

How Alta & PhilipCapital solve the liquidity problem

Selling shares for unlisted companies can be a tedious and time-consuming process. But now, Alta’s exchange arm, AltaX, has partnered with Phillip Securities Pte Ltd to simplify and streamline this process.

Through the collaboration, we are introducing a liquidity program that leverages Phillip Securities' extensive investor network to provide a straightforward and guided procedure for retail investors to sell and monetize shares. (More information for retail investors can be found here.) 

Empowering shareholders with unparalleled flexibility, this liquidity program enables them to connect directly with PSPL to sell their shares, which are then made available for trading on AltaX. Here, investors can tap into the vast potential of AltaX's vibrant ecosystem, characterized by active global traders and market makers, ensuring a seamless and enriching trading experience.

In addition, investors on our exchange will also be able to see the prices at which shares are trading at, including past bids and asks, enabling price discovery and transparency to our investor community. 

But the journey doesn't end here. Following this inaugural trade, additional opportunities will arise later in the year, offering Income Insurance shareholders further chances to engage with PSPL and monetize their shares.

Innovative Liquidity Solutions for Private Companies: Why it Matters More than Ever Today

At Alta, we believe in building essential capital market infrastructure to facilitate access and liquidity for private companies, which are the backbone of our economies. Today, small-to-medium sized private enterprises contribute as much as 48% to Singapore’s economy, and 71% of jobs (source). 

By unlocking capital and access to investing in non-listed firms, we believe we initiate a virtuous cycle of capital that powers entrepreneurship, innovation, job creation, and more.

With Alta and PhillipCapital's transformative approach, combining the speed of fintech with the reliability of established financial institutions, we are revolutionizing the dynamics of private equity liquidity.

If you are an accredited or institutional investor, contact us today to learn more about the Income Insurance shares!