Page 1 of 5 PRESS RELEASE FOR IMMEDIATE RELEASE Elevate Programme Graduates See Capital Market as Viable Fundraising Channels to Catalyse Growth High performing companies in the Elevate Programme continue to consider the capital market to fuel growth, target IPOs In the centre: Datin Azalina Adham, Managing Director of Securities Commission Malaysia, Navina Balasingam, General Manager of CMM and Bikesh Lakhmichand, Founding Partner & CEO of 1337 Ventures with the executive leadership of the companies that participated in the Elevate Programme
For companies seeking growth, raising funds through an IPO can be a strategic alternative to traditional bank loans. Unlike loans, which require regular interest payments and repayment of principal, an IPO provides capital without the burden of debt.
This can free up cash flow for reinvestment into the business, fostering innovation and expansion. Additionally, going public can enhance a company’s market presence and brand recognition, attracting new customers and business opportunities.
The equity raised through an IPO can also be used to strengthen the company’s balance sheet, making it more resilient to economic fluctuations. Overall, an IPO can offer a more flexible and advantageous funding option for growth-oriented companies compared to bank loans.
This process allows them to tap into a broader pool of investors, providing the capital needed for expansion, research and development, or debt reduction. By going public, these companies not only gain access to significant financial resources but also enhance their visibility and credibility in the market.
The increased transparency and regulatory compliance required for an IPO can further boost investor confidence. Additionally, an IPO can provide liquidity for early investors and employees, aligning their interests with the company’s long-term success.
Capital Markets Malaysia (“CMM”), an affiliate of the Securities Commission Malaysia (“SC”), last week concluded the first cohort of its 2024 Elevate Programme (the “Programme”). The Programme is targeted at executive leadership of high performing, small and medium enterprises (“SMEs”) and mid-tier companies (“MTCs”) who are looking to accelerate growth, offering them knowledge and competency development to effectively navigate and leverage fund raising options via the capital market.
The 10-day Elevate Programme with the SC and Bursa Malaysia as strategic partners was designed
by CMM to help SMEs and MTCs reinforce the competencies and skills required to meet the specific
nuances of capital market fundraising be it through an IPO listing or private equity investment.
Specifically, the Programme’s intent is to enable executive leaders to articulate their vision for growth,
by building investor confidence in their capacity for scaling up.
Navina Balasingam, General Manager of CMM said, “SMEs and MTCs are vital to our economy, and it
is a priority for us to facilitate accessible pathways to raise funds critical for these companies to achieve
scale. CMM’s Elevate Programme is designed for this specific purpose. Through this platform, we hope
to support companies that are ready for the next level of growth. Done right, this initiative will be pivotal
in creating a vibrant and dynamic pipeline of companies enroute to listing or private equity investment
whilst positioning Malaysia’s capital market as an attractive destination for both fundraising and
investing.”
This effort supports the nation’s ambitions, as underscored by the SC’s recently unveiled ‘Catalysing
MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024–2028)’. Which sets out a goal of increasing MSME and MTC capital market fundraising by more than five-fold, from RM6.3 billion in 2023 to RM40 billion by 2028.
Notable graduates from past Elevate cohorts include, among others, SNS Network Technologies which
saw accelerated growth since attending the Elevate Programme, listing on the ACE Market in
September 2022 and completing its transfer to the Main Market in June this year, and YX Precious
Metals Bhd which listed on the ACE Market in 2022 and has begun the process of transferring to the
Main Market.
A ‘Demo Day’ Investor Showcase and Graduation
The latest cohort of the Elevate programme concluded today with the ‘Demo Day’ where participants
pitched their equity stories to potential investors and investment bankers, putting to practice the
learnings from the four-month programme. Aside from engaging with investors, the companies obtained
market-relevant, actionable feedback enabling them to further refine their plans and strategies to better
position their businesses as attractive investments.
The graduating companies represent a diverse number of industries, including manufacturing,
healthcare, retail, technology and services among others, all of which aim to amplify their growth
trajectory and market reach.
The participating companies include Fipper Marketing Sdn Bhd, Gourmet Ingredients Sdn Bhd, Great
Pyramid Sdn Bhd, i-Chem Solutions Sdn Bhd, Kasut U Sdn Bhd, Imetal (M) Sdn Bhd and Tera Va Sdn
Bhd, to name a few.
The next Elevate Programme cohort, scheduled to commence in September 2024 convenes a similarly
diverse group of leaders of high performing SMEs and MTCs. Companies seeking to join future cohorts
may visit https://www.capitalmarketsmalaysia.com/elevate-programme/. for more information on the
programme.
