StarBox Holdings, a Malaysian cash rebate, digital advertising and payments company, has filed to raise about $23 million in an initial public offering (IPO) in the US, making it the first Malaysian firm to directly list on Nasdaq.
In a statement, StarBox said its listing on Nasdaq, which will take place on August 23, will be a “litmus test and ice breaker” for Malaysian companies seeking to list in the US directly. Other Malaysian companies have listed in the US through SPAC or uplisting.
The Kuala Lumpur, Malaysia-based company plans to raise $23 million, if the underwriters exercise their over-allotment option in full, by offering 5 million shares at a price range of $4-5.
It intends to use the proceeds of its listing to expand the business in other countries in Southeast Asia. A part of the proceeds will also be used to upgrade StarBox’s software and systems and to promote its brands in Malaysia.
Its expansion plan includes Thailand and the Philippines by June 2023 and then Indonesia, Brunei, Singapore and other countries in Southeast Asia between July 2023 and June 2025.
Founded in 2019, StarBox is building a cash rebate, digital advertising and payment ecosystem that targets micro, small, and medium enterprises in Malaysia, with cash rebates at the foundation.
It has cooperated with retail merchants, which have registered on its GETBATS website and mobile app as merchants to offer cash rebates on their products or services.
In its IPO prospectus, the company said its GETBATS platform has over 600,000 members and nearly 800 merchants. It also reported $3 million in revenue for the 12 months ended September 30 2021.
“StarBox Group’s vision is to leverage our big data alliance and digital marketing technology to disrupt the monopoly large enterprises currently hold on big data collection around the world,” the company said on its website.
The market size of cash rebates and coupons in Southeast Asia is forecast to hit $7 billion by 2026, up from $2.1 billion in 2021, according to a Frost & Sullivan report cited by StarBox.