How to start investing?
Anyone can who at least 18 years of age can register to create an account to invest on AMB Connect. Companies can also invest as corporate investors.
AMB Connect as a regulated equity crowdfunding platform, is required to comply with legal and regulatory requirements to prevent fraud and money laundering. It is important for investors to carefully read, understand and comply with the following requirements.
- You have met all the minimum requirements. [for details, click HERE]
- Completed e-KYC. This is to verify the identity of its investors and ensure that they meet the necessary eligibility criteria to invest. This helps to maintain the integrity of the investment process and protect the interests of all investors on the platform.
- Submitted a complete profile. This includes providing accurate and up-to-date personal information, such as your full name, date of birth, contact details, financial information.
Campaign Offer & Terms
AMB Connect allows issuers to determine the offer & terms for their campaign. Here is some information that can assist investor in making informed investment decisions.
- Fundraise Parameters
Fundraise target: All or nothing Minimum target: If the startup or businesses fails to reach the minimum funding goal before the end of the campaign, the campaign is considered unsuccessful, and all investors' investments are refunded. Maximum target: Once the maximum target is met, the startup or businesses will halt accepting further investments. This target is known as the maximum amount that they intend to fundraise.
- Equity Parameters
Equity types: Ordinary shares or Preference Shares in accordance to Shariah principles Equity return: Depends on equity type and whether dividend is declared determined by issuers. Characteristic: Ordinary Shares
These are the most common type of shares issued by companies, and represent ownership in the company. Ordinary shareholders typically have the right to vote on company matters and receive dividends if the company is profitable. They are also last in line to receive assets if the company goes bankrupt.
Preference Shares
These shares come with certain rights and privileges that are not available to ordinary shareholders, such as a fixed dividend or priority in receiving assets if the company goes bankrupt. However, preference shareholders usually do not have voting rights.
Redeemable Shares
These shares can be bought back by the company at a fixed price, either on a specific date or at the discretion of the company. They are typically used as a way for companies to raise capital without diluting the ownership of existing shareholders.
Convertible Shares
These shares can be converted into another type of security, such as ordinary shares or preference shares, at a certain point in the future. They are often used as a way for companies to offer investors the potential for future upside while also providing some downside protection.
Irredeemable Shares
These shares cannot be bought back by the company at a fixed price, and typically represent a more permanent ownership stake in the company.
Redeemable Cumulative Shares
These shares are like redeemable shares, but also come with a cumulative dividend that must be paid before any other dividends are paid out. This can make them a more attractive investment option for investors seeking regular income.
- Valuation of Company
All company hosted on AMB Connect platform will be private company. Valuing a private company hence are significant for investors to have a comparable indicative of the company worth. There are generally 4 widely used method to value a private company as follows:- Comparable Company Analysis (CCA)
- Discounted Cash Flow (DCF)
- Precedent Transactions
- Direct Asset Valuation
- Investment Amount
Minimum amount: Minimum investment amount for an equity crowdfunding campaign is determined by the price per lot of share that is specified by the issuer. The lot size is the number of shares included in each unit of investment, and the minimum investment amount will depend on the price per share and the number of shares in each lot. Generally minimum amount would start from RM1,000. Maximum amount: Refers to the upper limit set by the ECF platform for an investor's investment in a campaign. The limit is based on regulatory requirements or issuer's discretion, but investors can choose to invest more up to a certain extent. However, AMB Connect will only accept investments up to a certain amount, and any excess funds will be returned. Investors should check investment limits before investing to avoid exceeding the allowed amount.
- Campaign
Campaign period: A campaign runs from start till end for 3-6 months. Once the dates for a campaign go live are set, they are fixed and cannot be altered. Investors can invest in the startup or businesses until the end date of the campaign, regardless of whether or not the issuer has reached its fundraise target.
Issuer have the option to conclude their campaign if they achieve their minimum funding goal before the set end date. Additionally, they have the flexibility to modify their campaign duration under certain circumstances.
Campaign status: Coming Soon will take place for 7-10 days and can be extended depending on the final readiness of Issuer to go live. This is to create early awareness and interest towards the campaign.
Pre-Live will take place for 7-21 days depending interest registered from investors. The date can be extended and this will result in Live and Closing date to be extended as well. This is aimed at converting early investors before the campaign goes live. The objective is to convert as many early investors as possible before the campaign goes live, ideally achieving a good percentage of the target before launch.
Live will take place for 30-60days and can be extended depend on final due diligence and review by AMB Connect. If we are satisfied with issuer's performance during the pre-live initiative and choose to proceed with the live launch, we will notify our investors once more and recommend that the issuer also reach out to them. At this stage, AMB Connect will endeavour to finalize the round and promote issuer company's campaigns and direction through various roadshow, publicity, and press/media channels. That will encourage more investors to join the platform.
Closing will take 10-14 days including 6 days cooling-off period. Closed Equity crowdfunding campaigns require a minimum investment target to be reached before the campaign deadline to be considered successful. Failing to meet the target within the deadline renders the campaign unsuccessful, and the issuer may extend the deadline or withdraw the campaign if necessary. If the issuer faces unavoidable issues, they can withdraw from the ECF campaign. Regardless of the reason for withdrawal, investors will receive a refund of their investments. The cooling off period marks the final opportunity for investors to either withdraw from or increase investment.
Disbursement will take between 10-30 days depending on legal documentation, response from company secretary and trustee. During the share allotment stage, the legal team will work with the issuer to finalize the share allotment process. At this point, the issuers are in the process of completing the required administrative procedures for issuing the shares.
Last Update: 22 July 2024
