KUALA LUMPUR (Oct 9): Equity crowdfunding (ECF) investors who invested in Sagtec Group Sdn Bhd and CL Technologies (International) Sdn Bhd in 2020 have made a return of 10 to 15 times their initial investment amount, according to ECF platform operator Ata Plus.
Based on its press release, Sagtec Group and CL Technologies are subsidiaries of Sagtec Global Ltd, which offered 1.75 million ordinary shares during its initial public offering (IPO) on the Nasdaq at US$4 per share, with a valuation of US$50 million (RM220 million).
According to online information, information technology solution provider Sagtec Global listed its shares on the Nasdaq in early March and raised US$7 million.
Why is the news only being released six months after the IPO? Through text messages, Sagtec Global chief executive officer Kevin Ng explained that a few Malaysian companies listed on the Nasdaq back then weren’t performing well, and he didn’t want the news to be released to avoid further impact on the company’s share price.
The six-month moratorium on shareholding, also known as lock-up period, was also still in place back then. “With that, the company’s share price wasn’t the ‘real’ price as yet. I did not wish to [release the news] in case some investors [purchase them at a high price] and get stuck [when prices fall],” he added.
Ata Plus pointed out that Sagtec Group and CL Technologies fundraised through its ECF platform in 2020. Their ECF investors who believe in early-stage innovation have been paid off handsomely today, proving that ECF is a powerful wealth-creation vehicle.
Ata Plus also pointed out that Sagtec Group secured RM1.06 million at a valuation of RM17 million at RM110 per share when it raised funds from ECF investors, while CL Technologies raised RM2.95 million at a valuation of RM14.4 million at RM55 per share.
Both companies have recorded revenue growth since their ECF exercise. Sagtec Group recorded year-on-year revenue growth of 301% for its financial year 2020 (FY2020), 186% for FY2021, 261% for FY2022, 162% for FY2023 and 205% for FY2024.
Meanwhile, CL Technologies recorded annual revenue growth of 495% for FY2021, 332% for FY2022, 194% for FY2023 and 201% for FY2024.
“Our listing on Nasdaq is a testament to the hard work and dedication of the entire Sagtec Global team, as well as the unwavering support of our investors and partners. The ECF campaign with Ata Plus was a pivotal moment in our journey, enabling us to accelerate our growth and bring our vision to life. We are grateful to Ata Plus and our investors for believing in us and helping us reach this historic milestone,” said Ng.
Ng further highlighted the impact of Malaysian Co-Investment Fund (MyCIF) by the Securities Commission Malaysia. “MyCIF was instrumental in fuelling our growth, allowing us to access additional capital through co-investment. This not only helped to de-risked early investments, but also provided us with the financial backing needed to scale and innovate faster.”
Ata Plus CEO and co-founder Elaine Lockman also expressed pride in Sagtec Global’s achievement. “We are thrilled to witness Sagtec Global’s success in Nasdaq. This exemplifies the power of ECF in democratising capital access and enabling promising companies to scale.”
“Sagtec Global’s journey reaffirms our commitment to supporting high growth business while creating investment opportunities for retail investors. We are honoured to have been part of their path to success,” she said.
