Parenthood Venture seeks up to $670k on Crowdo’s ECF platform to develop theme park

(From left) The Parenthood chief marketing officer Lilian Chan, CEO officer Leroy Lee, Deputy Finance Minister Chua Tee Yong, Crowdo CEO officer Leo Shimada, The Parenthood CEO Joe Sya and CFO John Lam

The Parenthood Venture Sdn Bhd, a family theme park operator, is seeking to raise up to MYR2.975 million ($670,000) through equity crowdfunding (ECF), making it the second ECF issuer in Southeast Asia.

It is also ECF operator Crowdo’s first issuer, and the first non-tech business in the region to seek funds through ECF.

Crowdo is one of the six ECF operators licensed by the Securities Commission of Malaysia (SC) last year. It is among the three operators who have launched their platforms thus far.

The fund that The Parenthood Venture is raising, is in addition to the MYR6 million it has already invested into building its second theme park, to be located in Sunway Pyramid Mall. The theme park is slated for launch later this year.

At a press conference on Wednesday, The Parenthood chief finance officer John Lam said the company had a pre-money valuation of MYR10 million, based on both price-to-earnings multiple approach and discounted cash flow valuation methodologies.

He said the listing aimed to raise a minimum of MYR1.05 million in exchange of 15,000 shares, representing 13.04 per cent of the company’s equity post-money, and the company allows an oversubscription of up to MYR2.975 million in exchange for 42,500 shares or 29.82 per cent of company equity.

Investors are able to purchase shares through Crowdo over the next 45 days, with a minimum investment of MYR2,100 for 30 shares.

The Parenthood’s ECF listing was officiated by deputy finance minister Chua Tee Yong, who had in November officiated the launch of another ECF operator, Crowdplus.asia’s platform.

Chief executive officer Leroy Lee said the company chose ECF for a portion of its fundraising primarily to build branding and enhance awareness of the company’s parenting concept business.

The Parenthood is a one-stop parenting concept family park with a school based on the UK syllabus, a playground and retail outlets, based on a London Street theme.

The first Parenthood family park was opened in Sunway Putra Mall on in January, with MYR3 million invested into the development of 16,000sq ft space that included 33 retail outlets.

“The (second park) will be on a much bigger scale, measuring 26,000sq ft and include a massive five-storey playground,” he said.

Lee added that a third park is in planning, estimated to be no less than 50,000sq ft, and based either in Johor or the Klang Valley.

Responding to questions about investors’ exit strategy, Lam said the company is gunning for an initial public offering on the Hong Kong Stock Exchange’s Growth Enterprise Market by 2020.

In the press materials, the company said that it believes an IPO in three to five years from 2016 is a credible exit strategy for investors of this round of ECF.

Alternately, the company was also exploring the viability of secondary trading on Crowdo’s platform as another potential exit option. This however, is still subject to the availability of such trading platform, and the SC’s regulatory approval.

Crowdo co-founder and chief executive officer Leo Shimada commented that Crowdo had MYR10 million to MYR20 million worth of potential listings in its pipeline, which were equally divided between tech and non-tech ventures.

“I’m agnostic about which type of venture is better for ECF. While tech tend to be early adopters, non-tech ventures like The Parenthood are good as they’re based on real economies,” he told reporters.

Crowdo had also started previewing Wedding.com.my as one of its upcoming issuers, at the launch of its ECF platform in January. Details of the social commerce platform for wedding planning’s issuance on Crowdo was not revealed, however.

Crowdo has also officially launched its peer-to-peer (P2P) lending platform in Indonesia on February 29, after six months of running a private version of the platform with a targeted group of participants.

Malaysia is in the midst of forming the guidelines for P2P lending, which the SC aims to introduce within the first half of this year.

Also read:

Exclusive: Crowdo to focus on pre-Series A deals in Malaysia, plans to launch operations in Indonesia by year-end

Malaysia: Crowdo launches ECF platform. Local startup, Wedding.com.my first to preview on platform

Malaysia 2015: Pioneering the equity crowdfunding market, anticipating P2P

Malaysia: CrowdPlus launches Asean’s first equity crowdfunding platform

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.