Singapore’s pop culture collectibles maker XM Studios has raised S$4.5 million in a token offering on investment platform ADDX.
Anchored by Temasek’s Heliconia Capital, the deal is the first equity-linked investment offered on ADDX.
The offer was 1.75 times oversubscribed from the firm’s initial fundraising target. The deal size was increased by S$1.5 million to S$4.5 million.
The minimum investment size for the XM Studios deal was S$10,000, down from the S$1 million minimum size typical for such investments, said ADDX and XM Studios in a joint statement.
Heliconia anchored the deal with a S$1 million investment and the round also saw global accredited investors taking part.
The tokenised offering on ADDX took the form of exchangeable notes redeemable for shares in XM Studios, at a significant discount. The notes will mature at an interest rate of six per cent per annum if not redeemed within 18 months.
Funds to seize new opportunities, XM Studios eye IPO
“The new capital enables XM Studios to seize opportunities in the next phase of our expansion – in new markets and new segments like premium mass collectibles, allowing fans to buy their favourite collectibles at a more affordable price range,” said co-founder and CEO of XM Studios Ben Ang.
Before the latest fund raise, Heliconia scooped up a 9.2 per cent stake in XM Studios through secondary transaction of shares, according to regulatory filings.
XM Studios told The Business Times that it is mulling a public listing, and the Singapore Exchange is one of its potential choices.
From a humble hobby shop in Bras Basah to global brand
XM Studios started from a humble hobby shop in Bras Basah Complex in 1997. It was run by the Ang brothers.
Today, it is a global brand with distribution in 18 markets.
The company is allowed to make collectible statues from popular comic brands like Marvel, Star Wars, DC, Transformers, and Sanrio thanks to its hold over 12 licences.
The collectibles are priced from under S$1,000 to S$6,000 each.
XM Studios reported double in revenue last year to S$16.9 million, from S$7.9 million in 2019. It also took home a profit of S$4.2 milliion.
Featured Image Credit: XM Studios