pitchIN introduces PSTX, Malaysia’s first secondary trading market

• Allows ECF investors to trade shares in pitchIN-funded businesses
• PSTX will open for trading at 10 am on 10 July 2024, initially listing ten companies

pitchIN, Malaysia’s leading digital fundraising and investment hub, has announced the launch of PSTX, the pitchIN Secondary Trading Market. In a statement, the company said PSTX is Malaysia’s first equity crowdfunding (ECF) secondary market. 

It added that its private equities marketplace joins the ranks of other international ECF platforms like Seedrs (based in the U.K) and StartEngine (based in the U.S) in providing formal trading platforms to ECF investors.

According to pitchIN, PSTX’s inception marks a new chapter for the company and the ECF ecosystem in Malaysia. The secondary market allows ECF investors to trade their shares in businesses that raise funds on pitchIN. Investors now have the freedom to manage their portfolios by deciding whether to invest further or realise their exits with just a few clicks. Additionally, PSTX is the ideal avenue for investors who missed their ECF deals, giving them another opportunity to take stakes in the fast-growing companies listed on PSTX.

PSTX will open for trading at 10 am on 10 July 2024 with ten companies listed initially. More companies are due to be listed in the coming months. At commencement, PSTX will open for trading two days a week: every Wednesday and Thursday between 10 am to 5 pm, and orders can be placed from 10 am onwards on Tuesdays. The secondary market will not open on national public holidays that fall on Wednesdays or Thursdays.

The ten companies that will be the first to be traded on PSTX are as follows:

1. Commerce.Asia - All In One E-Commerce Ecosystem

2. Gobuilders Netsoft (GoLog) - An intelligent cold chain logistic platform

3. Goobat - Revolutionising and providing accessible, authentic and affordable healthcare to all consumers in Malaysia

4. Mereka Innovative - Connects individuals to leading experts and services to solve your most pressing challenges

5. NuVending - A company that’s leading the way to self serving automation vending technology future

6. Signature Snack - A company selling wholesome products at wholesome price 

7. SilentMode - A software development company specialised in developing Software-As-A-Service for retail & fuel retail

8. Speedhome - Good for Tenants, Great for Landlords

9. Synergy Four (Oxwhite) - A firm that provides premium affordable essentials for everyday Asians

10. Vacrea (Cauli & Rice) - Like Rice, Unlike Any Rice

Sam Shafie, CEO of pitchIN said, “Since 2015, ECF has proved to be a vital component of the innovative financing and investment ecosystem in Malaysia. It has helped spur the development of private businesses in Malaysia and played a huge part in supporting them during the pandemic years. Over the years, pitchIN has assisted over 177 businesses to collectively raise more than US$68.8 million (RM325 million), making it Malaysia’s leading ECF platform.”

He added that introducing PSTX is the next natural step for pitchIN to realise its vision of becoming a complete fundraising and investing hub for private companies. “We decided to introduce PSTX because it benefits both investors and the businesses themselves as investors can choose to exit while businesses can gain new backers even when they are not actively fundraising. It is a win-win situation for all,” Sam said.

PSTX will enable the general public to safely invest in the private market through a regulated platform that is operated by pitchIN. Anyone wishing to trade will have to open an account with pitchIN and undergo the customary KYC processes required for users of registered financial platforms. The secondary market will operate on a cash upfront basis whereby users wanting to trade will have to ensure that the necessary funds are in their accounts before they place bids.

Kashminder Singh, CSO of pitchIN, highlighted how PSTX is transforming the private investment landscape and what the future holds for PSTX, “PSTX will boost investor choice and confidence with liquidity options, information, and transparency. Companies listed on PSTX will benefit as their participation will enable them to enhance their reporting and governance levels. Importantly, this is just the start of the PSTX journey for pitchIN. We are taking a measured and learning approach to growing our secondary market, which is why we are starting with 10 companies. Over time, we will be introducing more enhancements and innovations to our platform.”

PSTX is free to use and opens on 10 July 2024. For more information on PSTX and its offerings, please visit www.pitchin.my/pstx