1. How It Works
- ATA PLUS reduces the risk of fraud through checking, against publicly available information, the identity of the company and information provided by the company relating to the identity and character of its directors and senior managers.
- We exclude any company from being listed if we are not satisfied as to the identity of the company or of the company’s directors and senior managers, if we have reason to believe that any of the company’s directors or senior managers are not of good character, or if we have reason to believe that the company is not likely to comply with the obligations imposed on it under the service ATA PLUS provides.
- We will exclude any company from our services that engages in conduct that is misleading or deceptive, or likely to mislead or deceive.
- Level 1 screening looks into the the credit-worthiness of the business and the key management team (CTOS, CCRIS, DCHEQS). This reduces the risk of fraud. . ATA PLUS will exclude any company that engages in conduct that is misleading or deceptive, or likely to mislead or deceive.
- Level 2 screening focuses on the key products/services of the business, the USP, the business model, how much funds the business is trying to raise and will used for what purpose; and the potential gains and exit strategy for the investor.
2. Investing Guidelines & Eligibility
As an investor, you are subject to the investment limits provided in clause 11.21 of the Guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007, as follows :
- Sophisticated Investor : no restrictions
- Angel Investor : a maximum of RM 500,000 within a 12-month period
- Retail Investor : a maximum of RM 5,000 per issuer (Entrpreneur) with a total amount of not more than RM 50,000 within a 12-month period
It is highly recommended that you diversify your investment portfolio across a spread of portfolio of investments and asset classes, to minimize your investment risks. Also, importantly, avoid investing any more than you are able to lose.
Everyone is eligible to invest. You will however be classified to different categories of investors according to your investing limits, as per the Securities Commission guidelines described above. There are 3 types of investor categories :
- Sophisticated Investor : High Net Worth Individual i.e. an individual with a total wealth or net personal assets exceeding RM 3 million or its equivalent in foreign currencies OR High Net Worth Entities (Companies/Corporations) i.e. corporation with total net assets exceeding RM 10 million or its equivalent in foreign currencies based on the last audited accounts
- Angel Investor : An investor that is accredited by the Malaysian Business Angels Network (MBAN) as an angel investor.
- Retail Investor : An investor that does not fall under the categories of either Sophisticated Investor or Angel Investor.
You can register as an investor immediately upon the sign up process. You can continue browsing deals and register as an investor in detail once you’ve decided to invest. You will then need to provide us with your personal details for us to conduct a KYC (Know-Your-Customer) to verify your identity to ensure all investors are who they claim to be.
3. Understanding the Process
As soon as you register as a member, you can start browsing the business listing offered by entrepreneurs under ‘Discover Deals’ section. Once you’ve identified a business proposition that interests you, you may engage with the entrepreneurs to satisfy your own investment needs.
Typically, investors will :
- Assess deal : Evaluate the business's value proposition and inspect the proposed financial projection.
- Further enquiries : You may want to enquire for more information from the entrepreneur to make an informed investment decision. You can do this by joining the Closed-User-Group (CUG) Listing Online Forum as well as observing online discussion between potential investors and the entrepreneur on the equity offering.
- Commit amount to invest : You can commit an amount to invest in the business by clicking on the ‘INVEST’ button. This will prompt for you to complete your personal information and clarifying your capacity to invest. Make payment and agree with the Investment Agreement with the share issuer (entrepreneur) and ATA PLUS. You are then given a 6-day cooling off period, whereby you may withdraw the full amount of the committed investment.
- Invest and reach funding target : Once the business that you had invested in reaches its funding target we will send you an email notification with the information on your investment as well as access to all closing information, the investment documentation and administration process.
As a shareholder, you can communicate directly with your investee companies and request for a regular business progress update via the online Dashboard available on the ATA PLUS portal. While we don’t manage these communications, we do however provide assistance and tools that facilitate and encourage ongoing flows of information to investors. See Closed-User-Group Listing online Forum.
Entrepreneurs are given a maximum period of 90 days to list their business and reach their funding target. You can keep interesting deals under your own personalised ‘Watch List’ and track the deals’ funding progress.
This varies, depending on the type of investor that you fall under (see How much can I invest?) and the minimum requirement set by the listed businesses for funding.
Signing up as a member is free.
Once you become a member, you can enjoy free access to all deals and make investment(s) with no additional cost or fees. However, please take note that all required government levies or taxes will be charged accordingly, when an investment is concluded. For example: stamp duty etc.
If the minimum amount is not reached within the listing period, the funding round has not succeeded. In this case, the business will not get funded and you as an investor will get refunded the total amount committed.
All the committed funds are returned to investors.
The issuer must have outlined from the outset what its maximum overfunding amount would be. This is reflected under The Offer term sheet section on the Deal Page where issuers will state the maximum offering size they intend to raise.
The value of on an investment made prior to overfunding will remain the same, as the post-money valuation will go up by the amount invested.
It is important to note that in the event of an overfunding, the issuer has the liberty to select investors who will be involved in closing the deal. This mean that some investors may be left out from the deal, and the investment amount will be fully refunded to the investor who are not selected.
4. Completing an Investment
ATA PLUS will provide a standard form of shareholders/investment agreement for use. We will also extend the services of our legal advisors who can administer the entire transaction and documentation, at a very competitive rate.
However, the entrepreneurs and the investors may engage other legal advisors of their choice, if they wish to do so.
You can realise your investment returns in two ways:
- When a company chose to distribute profits to shareholders in the form of a dividend
- When you seel your shares for a higher value than when they were purchased. This can happen through :
- Trade/sale through a secondary market (if and when secondary markets for these shares develop in Malaysia
- THe company you invested in decides to buy back shares from investors
- The company you invested in is acquired/purchased
- The company you invested in decides to go for public listing
You should be informed that there is no guarantee that you will be able to sell your shares when you want to, or at all. Therefore the timing and nature of your return is uncertain.
By all means, please do! You can engage with the entrepreneurs during the funding round by participating in the online forum designed for all potential investors to communicate with the entrepreneur. You can also use the forum to discuss the offer with other investors and help each other to form opinions on the business’s prospects.
In addition, you can always request a copy of the business plan from the entrepreneur.
You are allowed to forfeit from a committed investment within 6-days period (cooling-off period) starting from the date of payment. You can do so by emailing us at [email protected]. Please state your ATA PLUS username account, the name of the pitch that you had committed to and the amount you wish to cancel. A member of our team will then process this for you and send you a written confirmation of the cancellation.
You can make payment via online direct debit or credit card facilities available on our platform. For telegraphic transfers or other modes of payment, you can select the option available on the payment window, or, contact us via email at [email protected]. Please state your ATA PLUS username account, the name of the pitch that you want to invest in, the amount that you want to invest in and the preferred mode of payment. A member of our team will then contact you directly to facilitate the payment.
We do not charge any fees for paying for investments or depositing funds for the investment. However, you will be responsible for any fees charged by your bank when making a bank transfer.