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Largest Venture Capital Company Formed in Singapore
Singapore Wednesday saw the emergence of its largest private equity vehicle, K1 Ventures Limited, a venture capital company jointly formed by three of the city state's largest companies.
With an initial funding of about 500 million Singapore dollars (US$290 million), K1 Ventures is also considered as one of the largest venture capital companies in Asia.
Keppel Corporation, one of the largest conglomerates in Singapore, announced Wednesday the birth of K1 Ventures in cooperation with DBS Bank, the largest bank in town, and SingTel, the dominant local telecommunications company.
K1 Ventures, originally Keppel's listed subsidiary Keppel Marine, will be dedicated to investing and supporting innovative Internet businesses in Asia and worldwide, said Lim Chee Onn, executive chairman of the Keppel Group.
With its focus based on geography, investment stage and industry, most of K1 Ventures' investments will target Asia, directed toward high-growth technology companies requiring expansion stage funding, Lim said.
K1 Ventures will not only invest, but also expects to offer strategic, operational and financial advice to firms in which it invests via strategic relationships.
While Asia will be a prime focus, the company will also consider appropriate investments in other parts of the world.
Keppel Corporation will issue up to 142 million new shares at 1. 55 Singapore dollars per share, to raise up to 220 million Singapore dollars, which together with its existing cash reserve, will give it a cash fund of about 500 million Singapore dollars to start the new business.
Lim Ho Kee, chairman and CEO of K1 Ventures, said the establishment of the venture capital company comes at the right time.
"The time is right, as equity markets have corrected significantly, bringing valuations, especially among technology firms, to more realistic levels," he said.
He said information technology and e-commerce will fundamentally change the Asian business landscape.
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