Fundraising to Become more Cost Effective as the SCM Eases Requirements

The Securities Commission Malaysia (SCM) relaxed the regulations for companies offering convertible notes to registered venture capital (VC) and private equity (PE) companies. According to the SCM, there are currently 124 VC and PE firms that are registered with the SCM, managing an estimated total commitment of MYR 6 billion.

The SCM stated that its latest move is expected to benefit start-ups; micro, small and medium-sized enterprises (MSMEs) as well as small and mid-cap companies; as these businesses can now lodge the issuance of their convertible notes directly with the SCM without requiring the services of a principal adviser. Lodgement fees have also been waived to further lower the cost of fundraising. In addition...