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ShareInvestor merges with InvestingNote; group aims for IPO in 3 years
https://www.businesstimes.com.sg/co...r-merges-investingnote-group-aims-ipo-3-years
FINANCIAL media and technology company ShareInvestor has merged with financial media platform InvestingNote in a deal that values the combined entity at over S$30 million.
The merger gives ShareInvestor the opportunity to expand its market data and investor education segments to Thailand and Indonesia, said chief executive Christopher Lee, and ties in with the company’s plans to grow across South-east Asia and list in three years.
ShareInvestor’s business is split into three segments: investor relations for listed companies in South-east Asia; data for multiple markets though its online platforms; and providing investor education.
While its corporate investor relations segment already has a footprint in Thailand and Indonesia, the market data and investor education segments are confined to Singapore and Malaysia.
InvestingNote, which was founded in 2014, is a community-driven platform for investors and traders to share ideas on stocks, personal finance, new and insights through social networking.
InvestingNote chief executive Shanison Lin expects the deal can close gaps that each company faces. He noted that ShareInvestor serves retail customers by providing market data, but it may lack user engagement.
Meanwhile, InvestingNote can gain from drawing market data directly from ShareInvestor.
Lin said: “Retail investors cannot do without data tools to analyse the market, and the market needs communities that share investment ideas and the latest news.
“The two platforms strongly complement each other in what they offer to both retail investor and professional investors. When we merge, we can tap on each other’s capabilities and cross-offer what we have and what we do best.”
The merged entity will have an enlarged audience of around 300,000 a month. Lin noted that ShareInvestor’s audience comprises older and more professional traders, while InvestingNote’s audience comprises millennials and Generation Z investors.
The deal involves a transfer of all InvestingNote assets to ShareInvestor in exchange for cash and shares. After the merger, Lin will hold a 15 per cent stake in ShareInvestor and sit on its board. He also takes on the role of group managing director of investor platforms at ShareInvestor, which looks after the business’ market data and investor education segments.
The remaining 85 per cent of ShareInvestor is owned by 10 individuals. The largest shareholders are Lee and the company’s chief operating officer Lim Dau Hee.
ShareInvestor was previously wholly-owned by Singapore Press Holdings (SPH), formerly the publisher of The Business Times. SPH sold its entire stake in ShareInvestor in a management buyout by Lee and Lim in 2018. (See #Amendment note)
In order to meet their initial public offering (IPO) goal, Lee said the company has to first launch its market data segment and investor education segment in Thailand and Indonesia in the next two years.
The company will then look at new markets in the region, such as Vietnam, by partnering local companies.
Singapore contributed around 50 per cent of ShareInvestor’s revenue for its financial year ended August 2022. Malaysia contributed 10 per cent, Thailand 35 per cent, and Indonesia 5 per cent.
The company currently provides investor relation services for around 650 public companies across the four markets.
Meanwhile, InvestingNote is operational in Singapore and Malaysia. Most of its revenue comes from Singapore, as it is still in its growth phase in Malaysia.
While Lee and Lin do not have specific plans for cross offerings at the moment, they noted possible ways the two platforms can tap on each other’s capabilities.
For ShareInvestor, it can add the investor network on InvestingNote into its customer base and tap on its social media tools.
Meanwhile, InvestingNote can cut costs by using market data provided by ShareInvestor. It can also make use of some data analyses provided by ShareInvestor.
Lee said: “This data, coupled with opinions of key opinion leaders, may make the experience for investors more compelling and relatable so that they can make good investment decisions.”
The group can also develop new technology and tools that can derive insights based on content on both platforms.
Noting that retail investors can increasingly move markets today, Lin said: “How can we derive insights based on all the data we have, without overloading investors with too much information?”
The platforms can also make use of each others’ community engagement activities to reach out to bigger audiences.
For ShareInvestor, this includes its annual investment event Invest Fair. InvestingNote has also organised trading competitions, such as the UBS Leverage Trading Tournament in 2022, where it invited retail investors to trade daily leveraged certificates issued by UBS in Singapore in a competition to educate the market about these products.
ShareInvestor.com and InvestingNote.com will still run as separate sites to retain their respective branding, given that each is targeted at different audiences.
Lin noted that ShareInvestor customers are more interested in plain data, while InvestingNote users are more interested in visual content, such as charts and short videos.
When entering new markets, Lee said, the company will also be able to use one platform to penetrate the market first.
Lee also said he is “quite excited” for the introduction of the digital asset class and teaching younger investors about both traditional and digital assets.
Noting that ShareInvestor has generally been more focused on equities, Lee said: “The arrival of digital assets has compelled us to look at the new things that are coming on board and that investors should look into, especially for younger investors.”
#Amendment note: The story has been amended to correctly state that ShareInvestor was previously wholly-owned by SPH.
