Ni Hsin EV Tech Sdn Bhd (NH EV TECH), a wholly owned subsidiary of Malaysia-listed firm Ni Hsin Group Berhad (Ni Hsin), has proposed to conduct an initial exchange offering (IEO) exercise through the issuance of utility tokens for its electric vehicle (EV) business.

NH EV TECH said in a bourse filing on Monday that the firm has signed IEO agreement with IEO Operator Pitch Platforms Sdn Bhd and service agreement with service provider Masverse Sdn Bhd.

Under the agreements, Pitch Platforms will provide its IEO services to NH EV TECH with the end objective of hosting the company on its licensed IEO platform (pitchIN).

Meanwhile, Masverse will conduct in-depth analysis and design the tokenomics for NH EV TECH’s utility token for its IEO pitchIN.

“NH EV TECH’s venture into EV two-wheelers has gained traction and we are making good progress in terms of promoting the transition from ICE two-wheelers to EV two-wheelers in support of reducing carbon emissions, creating green economy and achieving sustainability,” said Khoo Chee Kong, Managing Director of NH EV TECH.

He said the firm has received very encouraging interests and feedback from its engagements with various government departments and agencies as well as corporate entities on the use of EV two-wheelers in security, surveillance, enforcement as well as operational functions.

“We foresee healthy growth prospects for our EV two-wheeler business, not just in outright sales of the products but the rent-to-own, rent-to-use and ride sharing business models. In line with the forecasted growth, we need to expand our manufacturing and operational capacities,

“To finance this expansion, we are proposing to raise funds via the issue of utility tokens which will be hosted on the IEO platform, pitchIN, which is registered and recognized by the Securities Commission Malaysia,” he added

Meanwhile, pitchIN Chief Executive Officer Sam Shafie said the firm values innovation and clarity, and it sees great potential in this approach.

According to him, the issuance of an IEO utility token is a perfect fundraising mechanism for projects that aim to create and accelerate a community ecosystem.

Furthermore, he said this is a high impact EV project that will bring about positive changes to our transport system.

“pitchIN has led the way in equity crowdfunding (ECF) fundraising in Malaysia. We have raised the most funds and hosted the highest number of companies,

“We aim to replicate our success with our new IEO services,” he added.

Like all other pitchIN fundraising projects, he said the proposed NH EV TECH utility token will undergo rigorous due diligence and screening processes before it is launched to the public on its IEO platform.

Masverse Chief Executive Officer Chiew Kian Kok said that the tokens issued by NH EV TECH are utility tokens, which means they have practical functionalities within a specific ecosystem, rather than being investment-oriented securities.

“In the IEO market, utility tokens are expected to gain new premium space as investors recognize their actual use cases and potential value within specific projects or platforms,” he said.

He also noted that tokenomics will play a crucial role in providing sustainability for utility tokens, helping to foster project development and increase holder participation.

Additionally, he said Tokenomics will offer new financial means for product enthusiasts to benefit from participating in the project ecosystem, gaining profits or ownership rights.

“This innovative financial model will bring more possibilities for participants while supporting the success and growth of the project,

“Therefore, with the new role of Tokenomics, the value of utility tokens will continue to be acknowledged and driven within the IEO market and ecosystem,” he added.

NH EV TECH is in the business of manufacturing, assembling, promoting and marketing of all kinds of EV and accessories and development of concepts, facilities and fittings using EV battery systems for the delivery industry.

The focus of NH EV TECH is in smart mobility and its applications with safer and more efficient charging in a sustainable and environmentally-friendly model.

PitchIN is Malaysia’s Digital Fundraising and Investment Hub, and also a registered market operator with the Securities Commission Malaysia.

PitchIN has raised nearly MYR 300 million ($65.79 million) with over 160 successful ECF campaigns under its belt.

As of June 2023, pitchIN’s IEO platform was given the official go-live status.

Through this platform, pitchIN aims to connect promising companies to a wide range of investors in a regulated and safe environment.

Masverse is a Malaysian start-up pioneering in Web 3.0 technology that offers blockchain and Web 3.0 infrastructure solutions to different industries and sectors.

The firm’s one-stop Web 3.0 ecosystem provides smart contract and blockchain technology solutions to Malaysian communities.

Masverse is also working closely with the Education Department of Kuala Lumpur to drive the development of Web 3.0 education, equipping students with the necessary skills and knowledge to thrive in the digital age and has delivered Web 3.0 education micro-credential course with non-fungible token (NFT) certificates in collaboration with Asia Pacific University of Technology and Innovation (APU).

Ni Hsin EV Tech partners foodpanda Malaysia for greener food delivery with EV motorcycles