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How it Works
SMEs are the backbone of the Malaysia economy, has been contributing significantly to the business establishment and GDP of Malaysia. Historically, the growth of SME on a year-to-year basis has been relatively growing better than the overall GDP growth.
However, the SMEs have been heavily relying on own capitals and traditional bank financing as its funding resources for working capital and business growth. There are a lack of awareness on alternative financing options such as equity, future equity or digital assets and most importantly, how to optimize its capital structure.
Optimization of capital structure enables the company to choose its right mix of funding at the appropriate time while minimizing the cost of financing (equivalent refers to cost of capital)
Concurrently, there are lack of corporate finance knowledge in managing SMEs corporate exercises for its aggressive business expansion plan.
Hence, we have made it accessible by sharing our know-how and experiences, empower SMEs owners and management through hands-on consultation, to grow their business and maximize their business value together.
⸻ LEARN MORE ⸻
How it Works
SMEs are the backbone of the Malaysia economy, has been contributing significantly to the business establishment and GDP of Malaysia. Historically, the growth of SME on a year-to-year basis has been relatively growing better than the overall GDP growth.
However, the SMEs have been heavily relying on own capitals and traditional bank financing as its funding resources for working capital and business growth. There are a lack of awareness on alternative financing options such as equity, future equity or digital assets and most importantly, how to optimize its capital structure.
Optimization of capital structure enables the company to choose its right mix of funding at the appropriate time while minimizing the cost of financing (equivalent refers to cost of capital)
Concurrently, there are lack of corporate finance knowledge in managing SMEs corporate exercises for its aggressive business expansion plan.
Hence, we have made it accessible by sharing our know-how and experiences, empower SMEs owners and management through hands-on consultation, to grow their business and maximize their business value together.
⸻ LEARN MORE ⸻
What can you explore?
Fundraising Advisory
We make equity fundraising easier for you by working with equity investors and partners and guide you step-by-step in structuring the investment structure that best fit to your business stage and requirements.
Business Consulting
Are you facing challenges in the next stage of growth and expansion? There are various channels and strategy for business expansion. We provide independent consultation for business planning and advices on fundraising exercises and corporate finance consultation.
Financial Analytics
With our team's support and financial analytics, we turn your accounting numbers into meaningful insights that allows you to do financial and cashflow planning and make more informed and strategic decisions.
Alternative Financing
Identify the alternative financing that lower your cost of financing and fit to your business needs at the right point of time.
Corporate Finance Consulting
Would you consider expanding business via joint venture, mergers and acquisitions? We help you to positioning the company for potential business and corporate transactions and work with you on entire transactional processes.
Outsourcing Supports
Dealing with multiple parties might be tedious. Being your business consultant, our partners can take care of your other support needs – secretarial, audit, payroll support, tax advisory and compliances to ensure everything are in-line with the business plan we work together.
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How do we assess
There are six (6) key criteria under preliminary assessment to be considered for our mutual engagement to work together:Revenue Generating
Company revenue from its core business shall exceed RM 0.5 million in the past twelve (12) months
Addressable Market
Clear target market segment and the addressable market identified for its core product and services shall be large.
Growth Potential
The company shall demonstrate the commitment, clear business proposition and together we are able to identify high growth potential
Product Market Fit
Company shall have past operating track record along with proven product market fit and existing customers' retention
Technology
Depends on its business nature, the company shall own the original intellectual property, trademark and patent
Strong Founders
The founders and management team are passionate, committed and willing to work together for long term business growth
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Additional resources
Learning
To learn about equity crowdfunding, please have a read of Equity crowdfunding guidelines.
To learn about venture capital, please have a read of Series A fund financing.
Financing facility provided by Bank Negara Malaysia for SMEs – Business Recapitalization Financing.
Benefits of public listing
Access to capital
Listing the company allows you to have access to capital market to meet business expansion and corporate goals.
Upon listing it also enables the company to raise further funding from existing shareholders and new investors via rights issues and placement of shares.
Enhance credibility
Given its frequent disclosure and stringent compliances requirement, a listed company is perceived to have better corporate governance and hence, stronger advantages in business conduct
Incentives for employees
Incentive mechanism could be used to align the long-term interest with employees and better quality of human capital management
Facilitate growth
Greater access to capital enables the company to scale quicker via mergers and acquisitions with companies and businesses.
Issuance new shares could also be an option for merger and acquisition exercise.
Enhance profile and visibility
Listed company enjoy better media coverage, awareness and eventually enhance company and management team's profiles.
Widen shareholders' base
Better profiling and liquidity provides a good entry for various investors including professionals and institutional investors
Listing requirements for Bursa Malaysia
Aspect
Main Market
Ace Market
Quantitative admission criteria
- Profit test
- Uninterrupted profit of 3 to 5 full financial years (“FY”), with aggregate after-tax profit of at least RM20 million;
- After-tax profit of at least RM6 million for the most recent FY; and
- Have been operating in the same core business over at least the profit track record prior to submission
- Market capitalization test
- A total market capitalization of at least RM500 million upon listing; and Incorporated and generated operating revenue for at least one full FY prior to submission
No minimum operating track record or profit requirement.
Public spread
- At least 25% of the company’s total number of shares; and
- Minimum of 1,000 public shareholders holding not less than 100 shares each.
- At least 25% of the company’s total number of shares; and
- Minimum of 200 public shareholders holding not less than 100 shares each
Bumiputera equity requirement
- Allocation of 50% of the public spread requirement to Bumiputera investors at the point of listing
No requirement at the point of listing.
Allocation of 12.5% of the enlarged share capital to Ministry of International Trade and Industry (MITI)-recognized Bumiputera investors.
- within 1 year after achieving Main Market profit track record, or
- 5 years after being listed on ACE Market,
whichever is the earlier
Sponsorship
Not applicable
- Engage a Sponsor to assess the suitability for listing.
- Sponsorship is required for at least 3 full FY post listing and the Sponsor who submitted the listing application must act as the Sponsor for at least 1 full FY following upon admission.
Management continuity
- Continuity of substantially the same management for at least 3 full FY prior to submission; or
- For market capitalization test or infrastructure project corporation test, since the commencement of operations (if less than 3 full FY)
Continuity of substantially the same management for 3 full FY prior to submission or since its incorporation (if less than 3 full FY).
Transaction with related parties
- Must be based on terms and conditions which are not unfavorable to the company.
- All trade debts exceeding the normal credit period and all non-trade debts, owing by the interested persons to the company or its subsidiary companies must be fully settled prior to listing
- Must be based on terms and conditions which are not unfavorable to the company.
- All trade debts exceeding the normal credit period and all non-trade debts, owing by the interested persons to the company or its subsidiary companies must be fully settled prior to listing