Sometimes also called a backdoor listing, what it simply means is listed companies, facing a deterioration of their original business, try to salvage whatever value there is in the listed shell by allowing new controlling shareholders to come in and inject a new business that can hopefully turn the fortunes around.
Many new companies are getting listed via an RTO deal instead of an IPO. What are its pros and cons of a backdoor listing?
There appears to be a dearth of new listings on the Singapore Exchange (SGX). However, IPO numbers alone do not tell the whole story. A constant stream of new companies are trying to get on board — except that they are doing it via the reverse takeover (RTO) route.
