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Collaboration offers alternative channels to fundraise The Star Friday 20 February 2021

Collaboration offers alternative channels to fundraise


LOCAL equity crowdfunding (ECF) platform Ata Plus Sdn Bhd has tied up with IAP Integrated Sdn Bhd to diversify funding avenues for companies interested to raise funds through either platform.

Through the collaboration, companies that are too young or not quite ready to be listed on IAP will be able to raise funds through Ata Plus using the ECF model.

"In the past, our ability to host promising, bankable companies on our platform has been curtailed by conventional compliance requirements. The requirements specifically impact companies that are young who can't produce the minimum of having two years of audited financial statements.

"This has pushed us to explore collaborations with alternative financing platforms such as ECF, to aid these companies and leave no company behind"".

"The hope is that, after a successful equity raise and further growth, these promising companies can return to IAP for their future funding requirements, " says IAP chief executive officer Joann Enriquez.(pic)

Traditionally, companies raise funds via ECF for growth and expansion. Those that are more interested in short to medium term project financing can now turn to IAP.

IAP is a wholly-owned subsidiary of Raeed Holdings Sdn Bhd, which is a consortium of six Islamic banks, namely, Affin Islamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, Maybank Islamic Bhd, Bank Kerjasama Rakyat Malaysia Bhd and Bank Simpanan Nasional.

IAP has raised RM211.4mil from over 350 investors for 14 listings.

Meanwhile, Ata Plus has raised over RM40mil for SMEs and startups from 900 investors as at January 2021.

It is hoped that the complimentary products offered by Ata Plus and IAP through this collaboration will provide more companies with the option to raise capital from alternative channels and survive a challenging economic climate.