ADDX, the Singapore-based private market exchange, revealed plans to venture into the Gulf Cooperation Council (GCC) and Middle East/North Africa (MENA) regions. This strategic move aims to enhance the efficient allocation of growth capital and bridge the existing gap between private entities in need of financing and the capital providers.
The expansion of ADDX’s swiftly growing blockchain-fueled investment platform will usher in more financial opportunities for unlisted enterprises, encompassing micro, small, and medium-sized enterprises (MSMEs) and startups. These businesses are envisioned to be pivotal in steering strategic sectors and sustainable economic progression across the targeted regions.
Global financial institutions back ADDX’s trading platform, including renowned financial exchanges, national banks, and asset managers. Many of these institutions are capitalizing on the platform to facilitate easy and flexible access to budding, high-growth private enterprises.
ADDX operates under the regulation of the Monetary Authority of Singapore, responsible for digital securities’ issuance, custody, and secondary trading. Since its foundation in 2017, ADDX has amassed $140 million from prestigious institutions such as Singapore Exchange, Temasek subsidiary Heliconia Capital, the Development Bank of Japan, and KB Securities, among others.
The entry into the MENA region will broaden the reach to growth capital for companies on the verge of an initial public offering (IPO). This will not be limited to local financial entities and funds but will span across Asia and prominent global financial markets.
Concurrently, it will unveil new investment avenues in rapidly expanding Asian companies for local fund managers, thereby intensifying the economic ties between the Asia-Pacific (APAC) and MENA regions.
Danny Toe, ADDX’s Founder and Group CEO, said:
The capability to securely introduce private markets to capital investment holds vast potential for enhancing the financial frameworks of the regions. It presents an opportunity to solidify the economic interlinkages between pivotal APAC and Middle Eastern markets, fostering the growth of strategically significant MSMEs.
Manuel Jaeger, ADDX’s Business Development Head, emphasized the transformative power of blockchain-driven platforms in reshaping the perception of private market investments. He projected:
Our forthcoming plan in MENA seeks to emulate our APAC strategy, collaborating with financial institutions, regulators, and regional leaders to ensure seamless capital flow in private markets, benefiting investors, private entities, and the global economy.
Enabling more fluid capital movement in private markets can potentially amplify the allure of the region’s markets for high-demand startups in vital sectors like artificial intelligence, sustainable agriculture, and green buildings.
As of now, ADDX has showcased over 80 deals on its platform, partnering with industry leaders like Hamilton Lane, Singtel, and Temasek-owned Mapletree. The platform’s asset classes encompass private equity, hedge funds, and venture capital, to name a few, with a significant 60% of investment subscriptions conducted via its mobile application.