ARC Capital and Honour Network are excited to announce a partnership that leverages the expertise of both companies to offer hybrid capital fundraising to commercial enterprise planning to go public listing on global stock exchanges around the world.

Commercial enterprises have long viewed the public listing on global stock exchanges as the end game to raise capital. However, the process is long and expensive. Besides, the enterprise has to commit large upfront capital to prepare its business and organisation for public listing. In the age of digital organisation, enterprises often have to rebuild their core IT infrastructure & system, which they are not fully equipped with expertise and capital to do.

ARC Capital and Honour Network understand the challenges faced by such enterprises and have partnered together to help such enterprises in the following ways:

1. Provide them with a combined financial & technical solution for them to be successful in public listing;

2. Provide them pre-IPO capital fundraising from the crypto capital market.

We call this “Hybrid Capital Fundraising” because, eventually, these enterprises will ultimately go public listing on global stock exchanges around the world, which will return the capital raised from the crypto capital market together with the upside from the public listing.

Hybrid Capital Fundraising can be viewed as an Initial Coin Offering (ICO) before an Initial Public Offering (IPO). The innovation here is that the ICO will be issuing security tokens backed by the share of the commercial enterprise or its assets. The investors of the security tokens will have an irrefutable claim over the rights of the underlying shares of the company or its assets digital coded into the tokens. Often, such security tokens will include regular dividend from the revenue of the enterprises issuing the security tokens. The exit strategy is also very clear here, which is to buy back the asset-backed token upon success IPO.

Alan Lee CEO of Honour Network says “This is potentially a game changer for many commercial enterprises seeking to go IPO. Hybrid Capital Fundraising allows them to gain initial capital from the crypto capital market and in return, they provided a clear exit strategy for the crypto investors. It helps them to plan for the eventual IPO without taxing them heavily. They will also be helped by Honour Network to rebuild their IT systems to be ready for IPO.”

Alan Lee added further “Together with Arc Capital, with their expertise and experience in helping enterprises to go public listing, we are in a very good position to help anyone who is considering doing an ICO before and an IPO”.

Abraham CEO of ARC Capital says “With this combined expertise and knowledge in financial and technology, we are in excellent position to assist enterprises exploring IPO and ICO in this increasingly disruptive and digitalised business environment.”

Hybrid Capital Fundraising offers commercial enterprises planning to go public listing a game changing solution to tap into the emerging capital market without deviating their long term plan for public listing. Both Arc Capital and Honour Network are excited to be able to bring this solution to the market.

About Honour Network:

Honour Network is a fintech company based in the Republic of Singapore with expertise and technology to help anyone to issue and manage asset-backed tokens on the blockchain adhering to regulatory standards. This allows the democratisation and fractionalisation of asset ownerships allowing anyone from anywhere to trade their assets globally and seamlessly.