Listed shell purchase engagement in 2023
Background
- In 2017, our Client, a consultant based in the United Kingdom, contacted Healy Consultants to secure detailed information regarding the listing of a company on the Korea stock exchange;
- The purpose of the IPO was to enable some European high net worth individuals to be able to fund their international expansion projects by raising capital from third party investors;
- After discussion with our business owner Aidan Healy and our Singapore office director Simon Guidecoq, our Firm also suggested to our Client to consider: i) the purchase of an entity already listed on the Korea Stock Exchange (KRX) and ii) alternative jurisdictions (click link for a table of popular countries for the purchase of a listed shell).
Engagement planning
- For this engagement, Healy Consultants and our Client agreed to prepare detailed project plans covering i) the registration of a Korea company ii) its listing on the Korea stock exchange and iii) the purchase of an existing business on KRX;
- We also agreed to supply a detailed table of comparison of alternative jurisdictions, and complete preliminary research re the availability of listed shells on their respective exchanges.
Korea engagement
- Within 2 weeks, Healy Consultants Group supplied a detailed project plan for the registration of a Korean joint stock company;
- Thereafter, we assisted our Client to determine the optimal Board of KRX for an IPO. After 2 weeks of research, we concluded the same to be KONEX, the start-up board;
- We however supplied also information on KSM, an alternative OTC platform often used by high tech start-ups in Korea to trade equity, before proceeding with a listing on KONEX;
- Thereafter, we supplied 2 detailed project plans including complete detailed information on i) the IPO process on KONEX and ii) the steps to take a majority equity participation in a business already listed on such board;
Global listed shell search Engagement
- After completing the Korea engagement, Healy Consultants Group spent 6 weeks researching for alternative shell solutions outside of Korea;
- According to our results, we recommended our Client to proceed with the purchase of a listed shell in either Vanuatu or the USA, as such jurisdictions provide for multiple shell entities available for sale. See this table for further details;
- The final document also included an estimate of engagement costs, and other regulatory and compliance information important to know before purchasing an existing listed shell company.
Conclusion
- Today, our UK Client has all information he requires to market shell entities to his HNWI customers;
- We are proud of having assisted our Client with the same and we remain available to supply more information his Clients may require in order to confirm whether a listed shell is the best entity for their business needs.
