1exchange Welcomes Its First Cross-border and Direct Listing Crigen Resources Berhad, Operator of Danai Spa, A Leading Provider of Wellness And Aesthetics Services In Malaysia Successfully Lists On Singapore’s First Regulated Private Securities Exchange In Fully Online Process
- Danai Spa is the first cross-border and the first direct listing on 1exchange, listing ~28% of total shares outstanding at an aggregate value of S$2m in a fully online process;
- 1exchange’s unique direct listing process enables Danai Spa to list existing shares for trading on Singapore’s first MAS-regulated private securities exchange, enhancing its path to liquidity;
- 1exchange’s direct listing of Danai Spa comes amid growing interest from companies and investors in private market opportunities, and increasing adoption of direct listings globally.
Singapore, 22 July 2020 – 1exchange (“1X”), Singapore’s first regulated private securities exchange and a member of leading integrated private market ecosystem CapBridge Financial, today announced the direct listing of Crigen Resources Berhad (“Crigen”), operator of renowned Malaysia-based wellness and aesthetics services provider Danai Spa via a fully online process. About 28% of Crigen total shares outstanding were listed on 1X at an aggregate value of S$2m.
Danai Spa is an award-winning provider of wellness and aesthetics treatments in Malaysia. It offers technologically advanced treatments via seven outlets to a stable base of over 13,000 members and retail customers. Danai will trade on 1exchange under its parent entity, Crigen.
Dennis Tan, Founder and Managing Director of Crigen, said, “Since 2003, Danai Spa has established a strong reputation among our loyal customer base for providing trusted wellness and aesthetics services. We have also maintained a market-leading position in the competitive wellness industry with our introduction of technologically advanced treatments and services.”
Chris Daniel Wong, co-founder of Crigen, further added, “The company is confident that the listing on 1X will be a key milestone in our plan towards a public listing in Australia. We look forward to going further with the support of our shareholders, customers, and partners.”
Choo Haiping, CEO of 1X, said, “Malaysia is one of the top wellness markets in Asia Pacific, on the back of rising demand for beauty and aesthetic treatment services boosted by the growing middle class and increasing consumer awareness. We welcome the direct listing of Crigen on 1X, as the company continues to grow its presence and capabilities. Notably, the pathway towards the listing was entirely facilitated online and attests to the reliability and robustness of our digital infrastructure.”
Based in the global financial hub of Singapore, 1X is the first regulated private securities exchange with a Recognised Market Operator licence granted by the Monetary Authority of Singapore. 1X is part of CapBridge Financial, backed by Singapore Exchange (“SGX”), and South Korea-based Hanwha Investment and Securities Co.
Mohamed Nasser Ismail, Senior Vice President and Global Head Equity Capital Markets, SGX, said, “1X was created to support a virtuous ecosystem of capital flow catering to companies in the mid-late stages of growth, adding to the vibrancy of the capital markets in Singapore. The 1X direct listing option enables companies such as Crigen to provide shareholders and other interested investors a market for tradeable private equities. We are pleased to support this pipeline of private listings and look forward to helping these companies prepare for an eventual public listing when they are ready.”
The direct listing on 1X was marked by a virtual gong-striking ceremony this morning, attended by representatives from Crigen, placement agent CapBridge Pte Ltd, trust administrator Equiom Singapore, as well as strategic partner and shareholder SGX.
This is the second listing on 1X. Singapore’s first regulated private securities exchange saw its first company listing in July 2019, paving the way for companies and investors to more easily access the private markets through tradeable private equities.
Direct Listing on 1exchange enables immediate tradeability for existing shares in completely online process
Crigen underwent a 1X direct listing, a unique process where about 28% of the its existing shares were listed and made tradeable on 1X, while the majority of shares remained privately-held. This hybrid approach allows Crigen to retain the operational flexibility that a growth-stage company desires, while boosting global investor outreach and liquidity via 1X.
In the COVID-19 environment where safe distancing guidelines and minimising physical contact are the norm, the listing process for Crigen was facilitated entirely online. Market participants in the listing were able to convenient and securely access, review, and execute on processes digitally – ensuring a safe and assuring investment experience for everyone.
Globally, direct listings have become an alternative path to liquidity for many companies, including fast-growing companies such as business communications platform, Slack, and work management platform, Asana. In a direct listing, companies do not have to undergo the relatively more time-consuming and costly traditional investor roadshow and fundraising process, as no new shares are issued. Global exchanges such as Nasdaq and NYSE are fiercely competing on such direct listings while in Asia, 1X has specifically designed its direct listing to accommodate private, growth-stage SMEs.
Choo added, “We believe that there are many SMEs in Asia that can benefit from a highly streamlined and cost-effective listing pathway, which can be potentially be completed as fast as within a month. In today’s uncertain economic climate, SMEs can look at private listing as an efficient avenue to boost liquidity, enhance profile, and align shareholder base – which are critical factors in building further resilience and sustainability.”
On 1X, private companies can list up to 30% of their shares in the form of tradeable private equities. A direct listing on 1X enables companies to simply convert their existing shares to tradeable shares, in a cost-effective and efficient manner. This regulated asset class traded on 1X provides investors additional portfolio diversification with higher-than-market returns potential, while giving shareholders options for exits. Click here to view the virtual listing ceremony.