Global private capital platform CapBridge has received approval from the Monetary Authority of Singapore (MAS) for its associated entity, CapBridge Platform, to operate a securities exchange as a recognised market operator (RMO).

This will make the exchange, called 1exchange (1X), one of the first regulated private securities exchanges in Singapore, CapBridge said in a statement yesterday.

A previous bid by FundedX to create a private stock exchange for trading start-up equity and privately held companies in South-east Asia was shelved when it failed to get a licence from the MAS. In August, crowdfunding platform FundedHere said its new platform FundedX will not be operating until it has received the relevant authorisation, on discovering that the business model is not licensed under FundedHere's current licence.

The 1X private exchange structure is designed to catalyse liquidity for private companies prior to an exit event such as an initial public offering, or mergers and acquisitions. Companies listed on 1X remain private and enjoy more control, greater flexibility and lower costs compared to a public listing, said CapBridge.

CapBridge founder and chief executive officer Johnson Chen said: "With the RMO exchange licence, we can now offer an even more integrated suite of private capital services to deserving companies seeking growth capital and sophisticated investors looking for alternative growth options."