Sumner Global Singapore (Sumner Global), in conjunction with Sumner Group Holdings (SGH), has launched SGHX, the largest Security Token Offering (STO) fundraise in the Middle East, for up to $100 million.
Funds raised will support the strategic growth of SGH’s portfolio companies and allow the integration of blockchain technology throughout the group to increase efficiency. In addition, SGH’s first major UAE based acquisition, currently under option, will be realized as SGH readies itself for a London Stock Exchange debut.
Prominent Abu Dhabi investors Blue Rock Capital and Blue Stone Capital representing Khalifa Hasan Ali Saleh Al Hammadi have signed intentions of $10 million each. The remaining $80 million will be raised through private sales and subsequent listing of SGHX tokens on a suitable exchange, followed by a prospective public STO.
David Sumner, Chairman & CEO of SGH said: “This is an exciting moment for Sumner Global and Sumner Group Holdings. This fundraise will allow us to strengthen our portfolio companies and execute our growth strategy throughout the region and globally. We are very grateful to our cornerstone investors for their participation.
“Security Token Offerings are a far cry from the days of ICO’s. Investors in the SGHX STO will receive tokens that are digitally programmed, and asset backed through a combination of public and private companies. Prior to any public sale launch, the tokens will be verified as fully compliant with regulations enforced by the Monetary Authority of Singapore.
“In launching this STO, we are offering potential investors access to a digital asset backed by a diversified portfolio of natural resources, building materials, digital media and healthcare recruitment companies. Security backed by real assets”
Sumner Global will facilitate the Security Token Offering and as a result, SGH will become one of the world’s first long term global investment holding companies to raise capital through this funding mechanism. A public launch will be in accordance with the regulations of the Monetary Authority of Singapore. Having received the requisite legal and regulatory approvals, SGH will issue up to 400,000,000 Class B Shares to Sumner Global as issuer of tokens (SGHX Tokens). These SGHX tokens will be secured against digitized rights attaching to the Class B Shares.
STOs combine the reliability of traditional finance with the versatility of cryptocurrency and efficiency of blockchain technology. STOs have a number of key advantages over offerings such as IPOs, including lower costs for issuers; a broader international reach; not being tied to a particular country or exchange; and programmable compliance.
SGH is a diversified holdings company which acquires builds and manages businesses across the globe for the long term. The company currently holds interests in six businesses – VI Mining; SG Recruitment; Cleantech Building Materials; Glam Holdings; Fendix Media; and UAE Oil Services. These businesses are at various stages of maturity, from venture capital to publicly traded.