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CAPITAL MARKET

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.

FINTECH INDUSTRY

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”.

DIGITAL TRANSFORMATION

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.

CORPORATE AFFAIRS

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.