March 21, 2019, | AtoZ Markets - Abu Dhabi will be participating in a $100m STO prior to entering the London Stock Exchange the next year.
Contributing $10 million each, each of the Abu Dhabi-based investment firms Blue Rock Capital and Blue Stone Capital –as representing Khalifa Hasan Ali Saleh Al Hammadi- will be cornerstone investors in the upcoming Summer Group’s fundraiser, which aims to raise up until $100m.
The remaining $80m will be covered by private sales and subsequent listing of the SGHX tokens on a suitable exchange, as per the company.
The basic goal of raising the funds is to support expanding SGH’s portfolio companies and its UAE-based acquisition for the first time, as being considered currently, prior to entering the London Stock Exchange for the first time, as announced.
The STO will be the largest on a middle-eastern scale, and will be raised through the company’s Singapore-registered subsidiary, Sumner Global, which will be selling the the SGHX token to public and private investors, according to the company’s official statement.
Tokens comply with the regulations of the Monetary Authority of Singapore
The Chairman and CEO of SGH, David Sumner, said in a statement: “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 ICOs. Investors in the SGHX STO will receive tokens that are digitally programmed, and asset backed through a combination of public and private companies.”
Sumner assures that “Prior to any public sale launch, the tokens will be verified as fully compliant with regulations enforced by the Monetary Authority of Singapore.”
Sumner further stressed that the STO referred to constitutes a guarantee for investors who like to take part in: “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.”
A vital point to refer to is that STOs are financial securities backed by tangibles such as assets, profits, or revenue of a company.
STOs offer legal rights such as voting or revenue distribution to the token holders, unlike initial coin offerings, which are not backed by any assets.