Important

Risk Disclosure Statement

Please read carefully before investing in unlisted shares.

Investment Risk Warning

Investing in unlisted shares involves substantial risk of loss and is not suitable for all investors. The value of your investment can go down as well as up, and you may lose all of your invested capital. You should not invest money that you cannot afford to lose.

1. Liquidity Risk

Unlisted shares are not traded on recognized stock exchanges and have limited liquidity compared to listed securities.

  • You may not be able to sell your shares when you want to
  • Finding a buyer may take weeks or months
  • You may have to sell at a significant discount to exit
  • Lock-in periods may apply for certain investments

2. Information Risk

Unlisted companies are not required to make the same level of public disclosures as listed companies.

  • Limited access to audited financial statements
  • No mandatory quarterly reporting requirements
  • Business updates may be infrequent or unavailable
  • Material information may not be disclosed publicly

3. Valuation Risk

There is no transparent market mechanism to determine the fair value of unlisted shares.

  • Prices are negotiated between buyers and sellers
  • Significant price variations may exist for the same stock
  • No real-time price discovery mechanism
  • Valuations may be based on limited or outdated information

4. IPO Risk

Companies may not go public as expected, and IPO outcomes are uncertain.

  • IPO plans may be delayed or cancelled
  • IPO price may be lower than expected or purchase price
  • Post-listing price may fall below IPO price
  • Lock-in periods may apply post-IPO for pre-IPO shareholders

5. Business Risk

The underlying company may face operational, financial, or competitive challenges.

  • Company may fail or become insolvent
  • Revenue and profitability may decline
  • Market conditions may adversely affect the business
  • Management decisions may destroy shareholder value

6. Regulatory Risk

The regulatory environment for unlisted shares may change.

  • Tax laws may change, affecting returns
  • New regulations may restrict trading of unlisted shares
  • Compliance requirements may increase transaction costs
  • Company-specific regulations may impact business operations

Important Acknowledgment

By investing through PRE PUBLIC, you acknowledge that:

  • • You have read and understood this risk disclosure statement
  • • You understand that past performance does not guarantee future results
  • • You are investing with money you can afford to lose
  • • You have sought independent financial advice if needed
  • • PRE PUBLIC is not responsible for investment losses

Last updated: December 2024

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