Exclusive: Teak Capital unlikely to go for another IPO, leaning towards trade sales

Teak Capital logo

As Teak Capital Sdn Bhd marches on with its divestment strategy, the Malaysian venture capital fund believes its following exits will likely be trade sales, rather than IPOs.

Without disclosing much, managing director Chok Kwee Bee told DEALSTREETASIA that the firm is working on divesting from most of the seven companies in its current portfolio.

“We are looking at divestment definitely, but we can’t talk about yet. The fund has one more year to the expiry and because any exercise will take at least three to six months, we have to start working on them,” she said after sidelines of Aemulus Holdings Bhds launch of its prospectus last Wednesday.

Aemulus is the first IPO exit in the Teak Ventures fund. The automated test equipment design house will debut on the ACE Market of Bursa Malaysia on September 15.

“We won’t say there is no IPO, in the sense that if we could sell to a public company through a reverse takeover, we don’t know yet. But I think trade sale is more likely,” she said.

Chok said the firm is currently talking to other parties for trade sales. “It’s not that we want to divest, these companies still have potential but its due to the time frame of the fund we decided that we have to start looking at (divesting),” she commented.

She notes that given the impending fund expiry, Teak Capital will have to take stock of its divestments by the second quarter of next year (2Q16).

Teak Capital’s inaugural fund Teak Ventures is still invested in Youth Asia, an online crowd-powered marketing solutions provider, which has two units under it – Groupsmore and Says. Groupsmore was acquired by flash sale giant Groupon Inc in 2011 while Says merged with certain subsidiaries of Catcha Media Bhd in 2013 to form Rev Asia Bhd, listed on Bursa Malaysia.

Xentral Methods, which provides digital right management solution; fonYou, which provides cloud telephony applications and services to telecom operators; retail management solution provider Web Bytes and tertiary education search engine platform EasyUni.

Teak Ventures will remains a stakeholder in Aemulus post-IPO, although it decreases its shareholding by about a third from 9.74 per cent to 6.82 per cent.

Also read:

Malaysian VC Teak Capital plans IPO exit

Exclusive: Teak Capital to stay invested in Aemulus post-IPO

Aemulus obtains approval for IPO on ACE Market

Entrepreneurs need to dream big: Chok, Teak Capital

KFit’s need for speed: Charting growth with three-month checkpoints

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.