Starbox makes debut on Nasdaq, Malaysia's first US listing in 2022

KUALA LUMPUR: Malaysia-based Starbox Group Holdings Ltd has officially announced its listing on Nasdaq Capital Market on Friday.

Headquartered in Malaysia, Starbox builds a cash rebate, digital advertising, and payment solution business ecosystem targeting micro, small, and medium enterprises (MSMEs) that lack the bandwidth to develop an in-house data management system for effective marketing. 

"Stepping foot into Nasdaq makes us feel proud that we were given the chance to make Malaysia proud and elevate our standing as Malaysians on a global stage," chief executive officer Lee Choon Wooi said at the announcement ceremony here last Friday.

Prime Minister's Department Secretariat for the Advancement of Malaysian Entrepreneurs former chief executive officer Neil Foo said Starbox had seen exponential growth during the pandemic due to an increased volume of online purchases and had perfected the online and offline (O&O) business model.

"With Malaysia having 1.1 million SMEs that contribute to 38 per cent of the national gross domestic product (GDP), SMEs are the backbone of our country's economy. 

"Starbox Group is the new bankable financial model for all aspiring SMEs, and they have indeed presented themselves as the catalyst for other local SMEs to follow in their footsteps," he said.

The company began trading its stock in New York under the ticker symbol "STBX" on Nasdaq. 

Starbox became Malaysia's first US initial public offering (IPO) this year and was the only Malaysia-based company currently listed on Nasdaq with foreign private issuer status. 

The company said the SEC Form F-1 showed that Starbox's total revenue increased by US$2.8 million, or 2,352.9 per cent, to US$2.9 million for the six months ended March 31, 2022, from US$0.12 million for the same period last year.

According to an industry report by Frost & Sullivan Ltd, cash rebates and coupons were expected to remain powerful incentives for retail shoppers to return and spend more on their favourite online stores. 

It is expected that the market size of the cash rebate and coupons industry in Southeast Asia would reach approximately US$7.0 billion by 2026, representing a compound annual growth rate (CAGR) of 23.1 per cent from 2022 to 2026. 

With the online business model continuing to be a growing trend, the market size of the digital advertising industry in Southeast Asia will reach US$15.9 billion in 2026, representing a CAGR of 9.3 per cent from 2022 to 2026.

As such, Starbox said it planned to selectively launch its digital advertising and cash rebate services in other countries in Southeast Asia during the next three years, beginning with markets such as the Philippines and Thailand between July 2022 and June 2023.

It also plan to further expand into Indonesia, Brunei, Singapore and other countries in Southeast Asia between July 2023 and June 2025.

By NST Business