Kapital DX (KLDX) announced the launch of its Initial Exchange Offering (IEO) platform, touting it to be the first of its kind in Malaysia, in a bid to open up new investment opportunities for investors in private markets.

The IEO platform is registered and regulated by the Securities Commission Malaysia (SC). The only other registered operator is equity crowdfunding platform pitchIN which aims to launch its own IEO platform this year.

The two registered IEO operators will be able to provide an alternative avenue for eligible companies to raise funds via the issuance of digital tokens in Malaysia. An issuer may raise funds up to RM100 million from retail, sophisticated, as well as angel investors. This is subject to the investment limits provided in the SC’s Guidelines on Digital Assets.

KLDX said that the IEO platform will provide investors with the opportunity to invest in digital investments that are backed by underlying assets, such as equity shares, fixed income instruments and funds.

The firm added that it would ensure that only high-quality investments are offered through the platform by implementing a rigorous due diligence process.

KLDX will also actively offer environmental, social and governance (ESG)-focused investment products to its investors.

“For companies looking to raise money, our IEO Platform provides easier access to capital, at a lower cost, and faster time to market, allowing companies to raise capital more efficiently.”