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CAPITAL MARKET

BEIJING: China will gradually liberalise rules governing initial public offerings (IPOs) of stocks, expanding a simple registration-based route to market rather than the current system of pre-approval by regulators, according to an amended Securities Law that was approved by parliament on Saturday.

Venture capitalists hammered out a stream of mega-funding rounds in the first quarter, handing out some of the last big checks before the world economy ground to a standstill. In the first three months of 2020, some 106 companies closed deals of $100 million or more, according to PitchBook data.

After driving much of the venture capital market's hyper-growth in recent years, corporations are poised for a decisive stress test of their zeal for funding startups. Heading into 2020, it wasn't unreasonable to forecast another record year for VC financing involving corporate venture capital arms, such as those of titans Intel, Salesforce and Google.

An initial public offering (IPO) seems to be the de facto goal of many startup companies. Founders, investors, and public observers often wonder, “When will this company IPO?”, “What will this company’s stock price be when they eventually IPO?” and “Why hasn’t this company completed an IPO yet?”

MALAYSIA’S IPO market is expected to remain lacklustre in 2020 as larger companies opt to defer listing while smaller companies will make up the bulk of the new listings here. Although general interest in IPOs remains healthy, investor interest in the domestic equity market has been relatively flat due to weak earnings

The venture capital sector has enjoyed a decade of global prominence amid record levels of fundraising. This has been particularly true for Southeast Asian start-ups raising funds in the early stage. However, industry players believe this has caused valuations to be inflated in recent times. The sector continues to attract significant inflows locally and regionally

Traditionally hot technology startups raised cash they needed through an IPO. But for new generation tech companies going public, one thing is very different: they dont need the money. They have a bigger existing shareholder base and those investors want liquidity.

Ace market has lower listing requirements compared to the main market. It is also in higher demand and a limited shell of Ace market companies are available. More accessible for companies that have no profit track record, as well as companies in early stages of growth into share capital markets.

Early investors and employees are looking to sell their shares, so they can make money outright as a company goes public. The company also saves money on direct listing compared to IPO. IPO process costs the company a lot of money and is ‘inefficient’. The trend of direct listing is increasing.

Companies can get the same result without selling a bunch of new stock and diluting existing shareholders and employees. IPO offers a steep discount for new investors, who typically get the benefits immediately. However, direct listing debuted with market based pricing.

The venture capital sector has enjoyed a decade of global prominence amid record levels of fundraising. This has been particularly true for Southeast Asian start-ups raising funds in the early stage. However, industry players believe this has caused valuations to be inflated in recent times. The sector continues to attract significant inflows locally and regionally

FINTECH INDUSTRY

Fintech is white hot these days, with major acquisitions and funding rounds galore. It’s also a relatively new space, with startups only really breaching the thicket of regulations that defines the modern banking and finance world in the past few years. So it is fascinating to watch how Shamir Karkal, one of the original fintech entrepreneurs, is coming back for a second round in this still-nascent industry.

SINGAPORE - The Monetary Authority of Singapore (MAS) said it has received “strong interest” in its move to open up the banking industry to new competition with 21 applications for up to five digital bank licences.

Financial services and financial technology (FinTech) are supported by regulators including Bank Negara Malaysia (BNM). Digital banking allows the offering of banking products and services through digital and electronic means. This includes retail as well as micro, small and medium enterprises (MSMEs). The key differentiation of a digital bank is that it may not establish any physical branches. A digital bank is still required to establish a registered office in Malaysia, which also serves to handle any faceto-face complaints.

KUALA LUMPUR: US-based financial services company Cross River Bank (CRB) is set to embark on an expansion into Asia, backed by a US$65mil joint investment by Malaysia’s V Capital Investments Ltd (VCI) and Shefa Capital.

The state of digital banking in the Association of Southeast Asian Nations (ASEAN) is as diverse as each of the countries comprising the bloc.

The lack of banking infrastructure, the need for minimum balances and religious issues are some of the reasons one-third of the world’s 1.7 billion adults remain “unbanked”.

Financial services and financial technology (FinTech) is supported by regulators including Bank Negara Malaysia (BNM). Digital banks allow for the offering of banking products and services to underserved and unserved markets through digital and electronic means. This includes retail as well as micro, small and medium enterprises (MSMEs).

Fintech has been on an upwards swing for many years now, putting some fear in the larger but much slower-to-digitize traditional banking sector. In fact, fintech deals rose to hit 3,000 last year, while total funding hit US$3.5 billion. Of course, the ongoing pandemic has disrupted organizations worldwide at a massive scale and driven a portion of services to flourish

At some point within the next year or so, three Chinese consumer tech giants could go public. One is Ant Financial, the payments arm of Alibaba, which was last valued at about $150bn. Shares in ByteDance are trading in the grey market at a level that implies a valuation of about $100bn, $25bn higher than the last private fundraising for the owner of TikTok and other platforms.

Companies can get the same result without selling a bunch of new stock and diluting existing shareholders and employees. IPO offers a steep discount for new investors, who typically get the benefits immediately. However, direct listing debuted with market based pricing.

Companies can get the same result without selling a bunch of new stock and diluting existing shareholders and employees. IPO offers a steep discount for new investors, who typically get the benefits immediately. However, direct listing debuted with market based pricing.

DIGITAL TRANSFORMATION

The coronavirus pandemic has pressured nearly every corner of the global economy, but analysts continue to see sunny days ahead for cloud computing and the ecosystem that surrounds the technology. The sub-sector is seen as a rare bright spot in the current environment, particularly as the outbreak pushes more people to work remotely, contributing to a long-term trend of rising demand.

An influential government authority responsible for planning China's economy has said blockchain will form an integral part of the country's data and technology infrastructure. The National Development and Reform Commission (NDRC) told reporters Monday blockchain will join other emerging technologies such as cloud computing, artificial intelligence (AI) and the internet of things (IoT) in underpinning the systems China uses to manage the flow of information in the coming years.

In 2019 the blockchain revolution ground to a halt. At least that’s the word from those who should know. A recent Gartner Group report called it “blockchain fatigue.” Other pundits echoed the view that pilots have fizzled out, few implementations have gone into production, and blockchain is likely to be a marginal technology.

This post is part of CoinDesk's 2019 Year in Review, a collection of 100 op-eds, interviews and takes on the state of blockchain and the world. David L. Shrier is a futurist and globally recognized authority on financial innovation, with dual appointments at MIT and the University of Oxford's Saïd Business School. His next book, Basic Blockchain, is being published in January 2020 by Little Brown (Hachette).

More companies are building digital capabilities that deliver business efficiency or top-line revenue growth in 2020. These are examples of companies are steering digital initiatives to drive business growth and operational efficiency.

Digital transformation provides enhancement to all aspect, if applied in the right way. It tremendous opportunities for digital to transform society in big, positive ways.

8 essential technologies that fundamentally changes the way companies do business, which includes: Artificial intelligence, Robotics, Drones, Blockchain, virtual reality, Augmented reality, Internet of things, 3D printing.

Blockchain technology faced unexpected obstacles in 2019, including low institutional trading volumes, slow enterprise adoption and a general lack of public understanding. Analysts say blockchain software applications will continue to broaden, with use cases in areas including law enforcement and enterprise.

Local technology players, industry associations and tech agencies in general applaud the various allocations set aside towards making Malaysia a stronger player and contender in the technology arena, both locally and abroad.

Exchange of value in the form of money and funds has been an essential process since time immemorial. It only makes a difference in how the ways have changed through human history. A new method of exchange has taken shape as technology boomed its way over time.

Today, analytics is becoming a significant game-changer in the financial sectors. Following the tradition, the banking, financial services, and insurance (BFSI) sectors are putting their full potential to widen their business opportunities and enhance the services that they provide their customers.

Blockchain technology faced unexpected obstacles in 2019, including low institutional trading volumes, slow enterprise adoption and a general lack of public understanding. Analysts say blockchain software applications will continue to broaden, with use cases in areas including law enforcement and enterprise.

CORPORATE AFFAIRS

Usually, when we think of transformation, we think of it as a shift in the fundamentals of a business, like Lee Iacocca’s turnaround at Chrysler or Steve Jobs’ return to Apple. Unfortunately, managers often overlook skills-based transformations, which can be every bit as important — and often more so — than higher-profile initiatives.

The hunt for bargains in Southeast Asian’s red-hot technology arena is finally driving investors to the Philippines. Galvanized by Alibaba-founder Jack Ma’s investment in payments outfit Mynt, early-stage investors have begun to explore opportunities in one of the region’s fastest-growing economies, which since 2012 has drawn but an iota of Southeast Asian venture capital investment.

Venture capitalists have raised record-breaking funds in recent years, but that doesn’t always mean the money is there for them when they want it. In extreme downturns, the people and institutions that promise capital to venture capital firms, and then wire it when the VCs need it for their startups, have little choice but to answer the phone less. The alternative is to sell others of their positions — including in publicly traded stocks — at a steep loss, and they’d really prefer not to do that.

Expect a short term reduction in deals close in SEA, China and Australia. Deals will be closing again for higher performing assets with the most contemporary offerings. For the last recession, best performing corporations divested more during downturn and acquired more in the recovery.

A number of fundamentally good businesses that are going to have a terrible year. It is an opportunity for private equity to go in there and take a meaningful stake or buy the company at a valuation they could not have gotten before.

The divergence between strong and weak will widen. Less financially robust private equity firms may struggle to rescue cash strapped portfolio companies as credit tightens. Cash alone won't guarantee success.

Whatever your economic indicator of choice, it’s always wise to stormproof a company for the rainy day that will eventually arrive. VCs are sketching out strategies for sustainable growth and guarding against threats to come.

As private equity firms finish out the first quarter of 2020, investors are bracing for their investments to be marked down. The only problem is, they likely won’t know how far valuations have dropped for a few more months.

Wall Street closed lower to cap a negative week for global stock markets as evidence of the heavy economic toll inflicted by the coronavirus pandemic continued to mount. The benchmark S&P 500 fell 1.5 per cent on Friday after the US recorded its largest pace of job losses since the financial crisis

Deal activity has ground to a halt and discussions with businesses hit by the panic around the coronavirus pandemic are evaporating, according to people with knowledge of the matter.

WeWork executives used to obsess over the number of people they could pack into each of the company’s shared workspaces. They said a more crowded office helped make the space feel active and spark collaboration when desk mates slid past each other in the hallways.

Blockchain technology faced unexpected obstacles in 2019, including low institutional trading volumes, slow enterprise adoption and a general lack of public understanding. Analysts say blockchain software applications will continue to broaden, with use cases in areas including law enforcement and enterprise.