#Asia Crowdfunding is making its way to Singapore’s SGX


Its an alternative for smaller SGX-listed companies to raise secondary liquidity outside of traditional methods

Singapore FINAL (1)

Singapore’s FundedHere — an equity-based and lending crowdfunding operator in Singapore — announced today it will open the doors for SGX-listed companies to raise short-term bonds worth up to S$5 million (US$3.7 million) on its platform, targetting the end of September for its first launch.

The company says each annual coupon will yield about 9 per cent annually.

The move is in line with a trend across Singapore’s business world in which companies are leveraging crowdfunding to raise money across diverse sectors (from financing a Bak Kut Teh restaurant, facilitating traditional investments and the more well-known recipients such as startups and charity).

This provides SGX-listed companies an alternative to raising capital outside of traditional methods like secondary offerings or issuing convertible debt.

“The Listco Bonds (listed-company bonds) will be an important extension of our licensed equity crowdfunding and crowdlending platform as listed companies can reach out to our pool of AIs (accredited investors), some whom seek higher yields. As the Listco Bonds will be issued by listed companies, they will offer more security compared to startups,” said Michael Tee, the CEO of FundedHere, in an official statement.

Also Read: Clarification on the latest developments in Singapore’s crowdfunding regulation drive

According to FundedHere, publically listed companies on either the SGX mainboard or Catalist (a less stringent secondary board) intending to raise money via the Listco bonds will not be required to issue a prospective.

The companies must be majority-owned by Singapore citizens, have a positive Net Tangible Assets and not be on the SGX watchlist. Bonds also must be backed by a corporate guarantee and FundedHere is currently in talks with an insurance agency to serve as an underwriter.

Only accredited investors registered with FundedHere are eligible to participate in investments. These investors must have at least S$2 million (US$1.48 million) in net assets (excluding primary residence) or an annual income of over S$300,000 (US$222,000).

For companies, the pool of potential investors is significant as FundedHere has close to 1,000 such people on its platform.

Once the listing has passed the criteria, it will be available for subscription for 30 days. FundedHere offers equity crowdfunding for as low as S$5,000 (US$3,700) but the company said it wants to target minimum contributions of US$50,000 (US$37,000) for this project.

FundedHere will charge a fee of 1.5 per cent of the total amount raised.

Also Read: Targetting SMEs, Singapore central bank lowers barrier to entry for securities-based crowdfunding

The crowdfunding platform received its Capital Market Services License in March 2016, which is a valuable asset because the Monetary Authority of Singapore in June lowered the barrier-to-entry for securities-based crowdfunding companies with the license.

Funded here was launched in March 2015 and targets companies in Southeast Asia and the Greater-China area.

Photo courtesy of Pixabay.



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