KUALA LUMPUR: Agape ATP Corporation has seen improved market valuation and better visibility on the global markets after its listing on Nasdaq, its top executive said.
The Malaysia-owned wealth and wellness company made its debut on Nasdaq in October where it raised about US$6.6 million from the listing.
Following the listing, Agape ATP Corporation founder and global group chief executive officer Datuk Seri How Kok Choong said the move enhanced the company's global footprint and solidified its financial foundations through increased investor confidence and improved market valuation.
The move to Nasdaq has opened doors to a wider, more diverse base of investors, which is pivotal for a company like ours aiming to reach global markets, How told Business Times in an interview.
"The United States' capital market is renowned for its stringent requirements regarding timely and accurate disclosures, ensuring that all investors are well-informed. This transparency has enhanced our investor outreach, enabling investors to make more informed decisions based on robust and reliable information.
"Our visibility has surged since the listing, making us one of the select Malaysian companies on such a prestigious global platform. This heightened exposure has not only increased our appeal to potential investors but has also significantly enhanced our valuation.
"With greater visibility, we've seen a tangible uplift in our market value, reflecting the confidence and interest from the global investment community," he added.
How said the company's investor base had widened as it received investor enquiries from across the globe, including the European and Asian regions, and notably from the United States.
"This global reach is something we could not have achieved had we remained listed only in Malaysia. It has allowed us to expand our market presence extensively and has opened up myriad development opportunities within our service segments."
How said Agape ATP is committed to enhancing individual well-being through a diverse range of products and services. its core focus areas include holistic health, personalised wellness plans and environmental wellness.
Its personalised wellness plans are specifically tailored to meet the unique needs and goals of each individual, acknowledging that effective wellness strategies vary from person to person.
How said the company opted to list on Nasdaq mainly for global exposure and financial accessibility.
Nasdaq, being one of the largest stock exchanges in the world by market capitalisation, attracts a diverse array of investors, including a significant number of institutional investors.
"This diversity provides a stable base of share ownership along with the potential for substantial capital inflows, enhancing liquidity which is essential for shareholders to easily buy and sell shares. Such liquidity is particularly vital for new and growing companies like ours that aim to attract a broad investor base."
Meticulous listing process
How shares that the listing process was underpinned by a thorough assessment of the company's readiness and the strategic objectives of this significant move.
The company was "rigorously" evaluated on its readiness to list on the Nasdaq and the overarching goals it aimed to achieve through the listing.
"The company engaged with a suite of professional parties, including investment bankers, accountants, auditors, lawyers, and financial and listing advisors to navigate the process.
"These experts formed a steering committee alongside our top management team. A critical challenge in this phase was managing expectations between our company and these professional stakeholders, especially concerning our valuation and management structure. This coordination was vital to ensure that all parties were aligned with our strategic vision and operational goals," he added.
Pricing the offering was another pivotal stage. How said together with the advisors, they determined an appropriate price range for the company's shares, taking into account current market conditions, investor interest, and our company's valuation.
"The initial public offering day marked a significant milestone, with shares sold to the public at the predetermined price and trading commencing on Nasdaq. This day was crucial in setting the tone for our market perception," said How.
Among the hurdles the company encountered during the process was the stringent regulatory compliance across different countries.
How explained that each country's regulatory environment is unique and can be quite demanding. In this case, the company was faced with costly challenges when adhering to standards such as the U.S. Sarbanes-Oxley Act as it required extensive legal and accounting resources.
"Furthermore, operating across various time zones introduced logistical challenges that necessitated some strategic adjustments on our part, like establishing regional offices and expanding our local teams, which added to our costs but were essential for seamless operations.
"Understanding the investor landscape in the U.S. was another critical challenge. The market dynamics and investor behaviours there are quite distinct from what we're accustomed to in Malaysia.
"We had to deeply understand these differences, which influenced everything from our communication strategies to our business operations, ensuring that we engaged effectively with our new market," How said.
On the brighter side, the listing opened up a myriad of opportunities. Accessing larger capital markets, especially in places like New York, provided Agape ATP with deeper pools of capital and a diverse mix of investor types, said How.
Navigating compliance regulatory requirements
To ensure the company meets and exceeds the regulatory standards of each jurisdiction, How said it engaged extensively with local experts, including legal advisors and compliance specialists, who provide invaluable insights into the local regulatory frameworks.
This approach aided Agape ATP's operations to align with regional laws while helping in foreseeing potential compliance issues before they arise.
"Furthermore, we have instituted robust internal compliance protocols that are regularly updated to reflect the latest legal and regulatory developments. These protocols are designed to be agile, allowing us to swiftly respond to changes in compliance requirements across different regions.
"This proactive stance not only mitigates the risk of non-compliance but also underscores our commitment to ethical business practices and maintaining the trust of our stakeholders worldwide," added How.
When contemplating a Nasdaq listing, How underscored that it is crucial for local companies to approach the process with a well-thought-out strategy.
It is essential to clearly identify why a company is considering an overseas listing.
How said a company needs to think if the move aligns with its long term goals.
"Regarding the financial side of things, never underestimate the importance of solid planning. The costs and professional fees associated with a Nasdaq listing can be quite significant.
"You need to ensure that you have robust financial management in place to handle these expenses not just initially, but also to sustain compliance and development post-listing. It's about being prepared for the long haul and ensuring your company stays on solid financial footing," he said.
Another integral component of the listing process is having the right partners that will facilitate the move.
"The right advisors can make a world of difference by helping you navigate the complex landscape of international markets."
Move towards sustainability
Moving forward, How said the company is embracing a strategic evolution via its move towards energy sustainability which integrates seamlessly with its health and wellness ethos.
He said the strategic direction allowed it to leverage its strengths in health science to include clean and renewable energy solutions, such as solar power and energy-efficient technologies.
"Our green energy segment is dedicated to reducing carbon footprint and aiding our customers in doing the same, thereby supporting a healthier environment alongside human health.
"This includes making green energy solutions more affordable and accessible, ensuring a just and equitable transition to cleaner energy sources for people of all backgrounds.
"Moreover, we envision long-term sustainability where green energy is a fundamental and enduring component of our energy mix, supporting sustainable living in a healthy environment," he added.