As the latest crowdfunding platform in Malaysia, AMB Connect is committed to hosting only Shariah-compliant campaigns for investors – who will be equally issued preference shares, CEO Cham Owi Tong told IFN Investor.
This platform went live on the 5th October 2024, about a year after AMB Connect was granted in-principle approval by the Securities Commission Malaysia (SC) and its first campaign will be raising up to RM20 million (US$4.67 million) for outdoor advertising firm Ganad Ventures.
Funds raised from the 23rd October 2024 for Ganad Ventures via the concept of Musharakah (partnership) and Tanazul (waiver of rights) will be used to upgrade selected billboards and for new energy-efficient installations over a three-year period.
Investors for the Ganad campaign will be issued Islamic redeemable convertible preference shares (RCPS) with a five-year tenure, receiving cumulative preferential dividends of 8% per annum and capital return upon expiry of this instrument.
Cham explained preferential shares being issued is aligned to the platform’s mandate to raise minimum RM5 million (US$1.17 million) for any campaign and up to a maximum RM20 million. As such, the platform’s campaigns will be pitched mainly to high net-worth individuals (HNWI) and institutions.
The four categories of preference shares to be issued via a share trustee arrangement are:
- Redeemable preference shares: Shares that can be redeemed by the issuer after the specific period,
- RCPS: Shares that can either be redeemed or converted into ordinary shares after the specific period,
- Irredeemable convertible preference shares: Shares that can only be converted into ordinary shares and cannot be redeemed, and
- Redeemable cumulative convertible preference shares: Shares that allow for cumulative dividends and can either be redeemed or converted into ordinary shares.
To avoid any form of Riba, Maisir and Gharar, Cham said underlying companies and business proposals are screened using the SC-crafted Shariah Toolkit. “The Shariah Toolkit will also be applied throughout the campaign period to maintain compliance.”
The AMB Connect platform is open to three categories of investors, with retailers allowed a maximum of RM5,000 (US$1,166) per campaign, with a total investment limit of RM50,000 (US$11,664) within a 12-month period.
Funding from angel investors – with assets valued at over RM3 million (US$699,834) and annual income exceeding RM180,000 (US$41,990) – is limited to RM500,000 (US$116,639) within a 12-month period while institutions and HNWI accredited as sophisticated investors have no cap.
Cham said AMB Connect has already lined up another two campaigns to be launched before 2024 ends, with a biotech venture and an aquaculture project in the wings.
