Hit S$500K EBITDA? You May Be Closer to an IPO Than You Think

If you are a founder running a profitable SME, the idea of taking your company public probably feels like something reserved for corporations with hundreds of millions in revenue. That assumption is understandable, but it is also wrong. And it could be costing you more than you realise.

The reality is that the minimum threshold to begin seriously exploring an IPO is far more accessible than most business owners expect. Companies with an EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of just S$500,000 in the latest financial year may already qualify for a public listing. That is not a far-off milestone for many established Singapore SMEs — it is a threshold that thousands of profitable businesses have already crossed without knowing what it unlocks.

The instinct to wait—to grow a little more, consolidate a little further—is natural. But delaying a listing does not necessarily reduce risk. In fact, it can limit your access to growth capital at precisely the moment your business needs it most. While you wait, competitors who have structured themselves for public markets gain access to funding, talent, and acquisition opportunities that remain out of reach for private companies.

Why “We’ll List When We’re Bigger” Is a Costly Myth

One of the most persistent misconceptions among founders considering IPOs is the belief that size alone determines readiness. In practice, capital markets reward structure, not size. A well-governed company with S$500K in EBITDA and a clear equity story can be more attractive to investors than a larger business with disorganised finances and unclear governance.

Consider three assumptions that keep founders on the sidelines.

• Bigger does not mean safer. Scale does not eliminate fundamental business risks like customer concentration or regulatory exposure.
• Bigger does not mean more liquid. Growth alone does not create liquidity for founders or investors.
• Bigger does not automatically mean more valuable. Growth without structure actually limits the value the market assigns to your business.

The valuation difference is worth pausing on

In a private trade sale, businesses typically sell for 4 to 5 times EBITDA. Through a public listing, that same business could be valued at 12 to 14 times EBITDA. For a company earning S$1M in EBITDA, that is the difference between a S$4-5M exit and a S$12-14M valuation — a gap that only grows with higher earnings.

This is why the timing question matters: the longer you operate without the structure that public markets reward, the more potential value you leave unrealised.

Are You Eligible? A Simple Checklist

For business owners exploring IPO requirements for SMEs, the starting point is straightforward. Your company needs a minimum EBITDA of S$500,000 in the most recent financial year. If you have hit that mark, the door is already open.

Aside from the earnings threshold, there are six important documents that IPO advisors will need to review when assessing your readiness:

• Financial Statements (past three years) – These form the backbone of any listing application and demonstrate the consistency and trajectory of your earnings.
• Management Accounts and Forecasts – Your latest internal accounts and forward-looking projections show investors where the business is headed.
• Company Website and Corporate Profile – A professional digital presence signals investor-readiness and provides visibility into your brand and operations.
• Management Background – Profiles of key personnel matter. Investors want to know the team driving the business has the experience and credibility to sustain growth.
• Products and Services Overview – A clear description of your offerings, competitive advantages, and business model helps advisors and investors understand your market position.
• Key Customers and Suppliers – Major client relationships, contracts, and supplier dependencies are assessed for concentration risk and revenue stability.

It is worth noting that this review is not purely financial. The strength of your management team, the clarity of your business model, and the diversity of your customer base all factor into your IPO readiness. A compelling business story can be just as important as the numbers behind it.

What Does It Actually Cost?

Cost is the most common reason founders hesitate, and it deserves a transparent answer. IPO expenses vary significantly depending on where you choose to list, so understanding the landscape is critical before committing.

For Singapore-based SMEs, Germany stands out. The Düsseldorf Stock Exchange offers the lowest annual maintenance fees of any major jurisdiction (below S$150,000 per year). More importantly, its sponsor programme allows qualifying companies to list for approximately S$240,000, of which S$200,000 is a performance deposit refundable upon successful IPO completion. This represents potential savings, cutting costs down to S$3 to S$3.5 million compared to a conventional listing.

Germany also offers engineered liquidity through mandatory market makers, which ensures consistent daily trading volume — a structural advantage over exchanges like SGX Catalist, where zero-volume trading days are common for smaller listings. These cost and liquidity factors can be decisive for founders evaluating how to buy into an IPO process and beyond.

What Does the Process Look Like?

One of the biggest concerns for any founder is how much time and attention an IPO will demand. The good news is that with an experienced advisory team, the process is structured to minimise disruption to your daily operations.

Through the Düsseldorf route, the estimated timeline is approximately 26 weeks, or roughly six months from agreement to first trading. The process moves through clear phases.

1. It begins with the advisory agreement and project kick-off in the first week,
2. followed by an extended valuation and equity story development phase over the next two to three months.

From there, the legal structure (typically a German AG) is established, share capital is registered, and capital market and regulatory preparations are completed. The final weeks focus on securing listing approval and preparing for first trading.

This compares favourably with SGX Catalist, where the process usually takes 9 to 12 months. Speed to market can be a significant advantage, even in cases of a founder tracking Singapore’s most recent IPO activity or just exploring international options.

 Taking the Next Step

If your business has reached S$500,000 in EBITDA, the path to a public listing is not as distant or complex as it may seem. The first critical step is not committing to an IPO, but it’s having your financials and business profile reviewed by a specialist who can assess your readiness and map out the most efficient route forward.

Reliance Consulting Services helps Singapore-based SMEs navigate the full IPO journey, from pre-listing valuation enhancement and corporate restructuring to regulatory coordination and investor introductions. With access to sponsor programmes, capital market connections, and deep experience in cross-border listings, our advisory team is ready to help you move from eligibility to listing without unnecessary cost or delay.

Are you ready to find out if you qualify? Contact the Reliance team to review your latest financials and take the first step toward unlocking your company’s public market value.