Capital raising is essential for business growth but presents challenges for mid-tier companies and small and medium enterprises (SMEs), especially in understanding and navigating the complexities of the capital market.

Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia, is addressing this knowledge gap via the Elevate Programme, which seeks to prepare Malaysian SMEs and mid-tier companies for their next stage of growth.

According to CMM general manager Navina Balasingam, the 10-day programme for business owners and C-suite executives addresses the core issues and challenges that are most signifcant for businesses looking to scale.

“Our goal is to ensure that companies on a steady growth trajectory are able to successfully scale their businesses by equipping them with the necessary set of competencies and expertise required for sustainable business growth. This could mean preparing for entry into new markets, becoming export-ready or anticipating a new acquisition.” 

“Recognising that taking a successful company to the next level of growth will require significant funding, the Elevate Programme supports the growth of these companies by enhancing their capabilities and readiness to access the capital markets — specifically equipping them with the guidance and preparation required for an initial public offering (IPO) or private equity investment,” she says.

The programme, led by lead delivery partner 1337 Ventures, consists of eight modules led by a panel of pre-qualified experts well-versed with the subject matter within the Malaysian context.

“We recognise that successful business owners and managers are unable to take 10 days straight out of their busy schedules, hence the training days are staggered over a four-month period”, Navina explains. 

The Elevate Programme begins with a two-day immersion into design thinking and encouraging a culture of creativity and innovation, followed by a workshop on evaluating funding options most suited to the respective company’s size, helping these companies determine the best way to achieve their capital-raising goals.

“A key part of the programme comes next — building your equity story, learning how to highlight the features of the business to attract investors, and essentially pitching the business to potential investors,” says Navina.

Participants also complete a marketing module, which provides insights into the latest trends and strategies in traditional and digital marketing.

ICT systems and solution provider, SNS Network Technology Bhd, which participated in a previous Elevate cohort, found the programme helpful in evaluating different fundraising options and navigating the capital market landscape.

“The Elevate Programme has been instrumental in helping us evaluate different funding options. It provided us with a comprehensive understanding of what funding entails, primarily focusing on IPOs,” SNS Network managing director Ko Yun Hung says.

“The programme gave us insights into IPO requirements, enabling us to make informed decisions about our funding strategy,” he adds.

Ko recommends that companies with listing aspirations consider participating in the Elevate Programme, as it provides a platform for an in-depth understanding of the stages in the IPO process while providing insights and tailored guidance from industry experts.

The programme, he adds, benefits companies looking to optimise their internal controls and effectively prepare for capital-raising exercises.

Green Lagoon Technology Sdn Bhd, which is involved in developing palm oil mill effluent (POME) anaerobic lagoon biogas-to-power projects, says the programme helped highlight the advantages and drawbacks of the various funding options available.

“Our objectives in participating in the Elevate Programme was to gain more insights into the latest capital market opportunities, improve the management and strategic skills of the company’s young management team, and network with like-minded individuals and corporations,” says Green Lagoon co-founder and CEO Chan Sow Keong.

“I would recommend any SMEs with outstanding business potential to participate in the programme, seeing that good businesses are what the market needs. Even mid-growth companies with stable business revenue but lacking the funds to push for growth can utilise the capital market fundraising for their next phase of growth and beyond,” he adds.

Green Lagoon underwent two rounds of equity crowdfunding (ECF), which funded its acquisition of biogas RE assets and diversification into a livestock manure project.

Its continued growth has sparked interest in a reverse takeover (RTO) of Ancom Logistics, potentially paving the way for Green Lagoon’s debut on the ACE Market.

As stakeholders increasingly recognise the importance of environmental, social and governance (ESG) principles, the Elevate Programme dives into how businesses can integrate these principles into their operations.

“The increasing importance of ESG adoption for businesses cannot be overstated. Participants are guided on creating a corporate sustainability strategy and will also learn about ESG reporting through the Simplified ESG Disclosure Guide (SEDG) for SMEs in Supply Chains,” says Navina.

Fipper Marketing Sdn Bhd, which is participating in the current ongoing Elevate cohort, commended the programme’s emphasis on ESG, which has inspired the household brand to explore more eco-friendly materials and production processes.

“We have realised that integrating these principles into our core operations not only benefits the environment and society but also creates long-term value for our stakeholders as well as our international brand recognition,” says Fipper CEO Jee Von.

“We will adopt best practices in sustainability to ensure our growth is responsible and inclusive. This includes exploring new materials and processes that reduce our environmental footprint and align with our eco-friendly brand promise. We will also integrate ESG elements into our vendor requirements to contribute to saving the world together”.

Overall, Von says the ongoing cohort has provided Fipper with fresh perspectives on scaling operations and navigating market challenges specific to the footwear industry, following interactions with mentors and peers.

He adds that the Elevate Programme also provides participants with the opportunity to network with funds and investors after each learning session.

“As Fipper moves forward, we plan to leverage the learnings from the Elevate Programme in several key areas, particularly in internal controls and corporate governance. We will continue to refine our business strategies based on insights gained from industry experts, aiming to enhance our market positioning and operational excellence,” says Von.

Following the ESG module, participants enter the programme’s final segment and begin to fine-tune their business plans and equity story. They then look deeper into various financial models, corporate governance and internal controls.

The programme ends with a Demo Day, during which the cohort graduates pitch their equity stories to a roomful of potential investors.

“There are specific nuances to raising capital through the capital market, which are addressed in this programme in a very practical manner, and past participants have expressed how the programme has helped them successfully navigate the road to listing and other forms of fundraising,” says Navina.

“For example, SNS Network, which was recently listed on the Main Market, is a graduate of the Elevate Programme. Other graduates that have since listed or received some form of capital market investment include ICT Zone Asia Bhd and YX Precious Metal Bhd,” she adds.

The Elevate Programme is currently accepting applications for the next cohort, which commences in September. While slots are limited, companies that do not secure a place could be shortlisted for future editions.

The programme is open to Malaysian mid-tier companies and SMEs with annual revenue of at least RM5 million.

CMM fully covers participants’ fees, and founders and C-level executives are required to commit to attending all 10 training days. Applicants must also demonstrate a long-term ambition to scale their businesses and have plans to access the capital market for funding.