VCI Global Limited announces the carve-out of its subsidiary V Capital Consulting Group for Nasdaq listing, enhancing growth opportunities.
Quiver AI Summary
VCI Global Limited announced the carve-out of its subsidiary, V Capital Consulting Group Limited (VCCG), for a listing on the Nasdaq Capital Market, which will allow VCI Global to maintain majority control while both entities can concentrate on their core competencies and growth opportunities. This move is part of a broader strategy to enhance value for shareholders by allowing each company to pursue tailored growth initiatives—VCI Global focusing on sectors like fintech and renewable energy, and VCCG providing corporate advisory services. The carve-out is anticipated to be completed by the end of the first quarter of 2025, contingent on regulatory approvals. This strategic realignment aims to leverage market opportunities, particularly in capital market consultancy, as demand for such services increases.
Potential Positives
- The carve-out of V Capital Consulting Group Limited for a Nasdaq listing allows both VCI Global and VCCG to focus on their core competencies, enhancing their respective growth potential and value creation for shareholders.
- The move is expected to unlock value by allowing both entities to optimize their operational structures and pursue tailored growth strategies more effectively.
- VCI Global will concentrate on high-growth sectors such as fintech, AI & robotics, and cybersecurity, positioning itself for sustainable growth in these lucrative markets.
- VCCG is well-positioned to capitalize on the increasing demand for capital market consultancy services, specifically in IPOs and M&A activities, due to market trends suggesting substantial growth opportunities in these areas.
Potential Negatives
- The carve-out of V Capital Consulting Group Limited could indicate that VCI Global is struggling to effectively manage its diverse business segments, necessitating a separation to enhance focus.
- The need for a carve-out suggests potential weaknesses in VCI Global's strategy or performance, raising concerns about its ability to compete in the market as a unified entity.
- Forward-looking statements include significant risks and uncertainties, which may cast doubt on the company's growth prospects and operational stability moving forward.
FAQ
What is the purpose of VCI Global's carve-out?
The carve-out allows VCI Global and V Capital Consulting Group to focus on their core competencies, enhancing growth potential and shareholder value.
When is the expected completion date for the VCCG listing?
The carve-out listing is expected to be completed by the end of the first quarter of 2025, pending regulatory requirements.
How will the carve-out benefit VCI Global's operations?
VCI Global will concentrate on expanding in high-growth sectors like fintech, renewable energy, and cybersecurity, enhancing its operational effectiveness.
What services will V Capital Consulting Group focus on?
VCCG will specialize in capital market advisory, including pre-IPO, IPO, M&A advisory, and strategic executive services.
What is the projected growth of the strategy consulting market?
The global strategy consulting market is projected to reach approximately US$95 billion by 2031, with an 11.3% CAGR from 2023 to 2031.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VCIG Hedge Fund Activity
We have seen 3 institutional investors add shares of $VCIG stock to their portfolio, and 4 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- VIRTU FINANCIAL LLC removed 36,128 shares (-100.0%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC removed 22,854 shares (-96.2%) from their portfolio in Q3 2024
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 16,225 shares (-97.6%) from their portfolio in Q3 2024
- TWO SIGMA SECURITIES, LLC added 13,256 shares (+inf%) to their portfolio in Q3 2024
- HRT FINANCIAL LP added 1,836 shares (+inf%) to their portfolio in Q3 2024
- BLACKROCK, INC. removed 1,800 shares (-97.9%) from their portfolio in Q3 2024
- RENAISSANCE TECHNOLOGIES LLC added 976 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
KUALA LUMPUR, Malaysia, Jan. 07, 2025 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global,” or the “Company”), today announced the carve-out of its wholly owned subsidiary, V Capital Consulting Group Limited (“VCCG”), for listing on the Nasdaq Capital Market. VCIG will retain majority control of VCCG. This strategic initiative aims to enable both companies to focus on their core competencies, better serve their respective markets, and enhance growth potential and value creation for shareholders.
The carve-out has been executed pursuant to the Stock Sale and Business Separation Agreement entered into on December 30, 2024, through the sale of VCI Global’s subsidiaries V Capital Consulting Limited and V Capital Advisory Sdn. Bhd. to VCCG. This strategic move is designed to unlock value for shareholders by allowing both businesses to fully realize their potential. By operating as two listed entities, VCI Global and VCCG will gain greater flexibility to pursue tailored growth strategies, optimize their operational structures, and enhance financial performance.
Following the carve-out, VCI Global will intensify its focus on expanding operations in high-growth sectors, including fintech, data center, AI & robotics, renewable energy and cybersecurity. This realignment will allow VCI Global to leverage its strengths, drive innovation, and foster sustainable growth in these sectors.
Meanwhile, VCCG will continue to focus on corporate advisory, specializing in capital market advisory for pre-IPO, IPO, and post-IPO exercises, M&A advisory, and strategic private executive advisory services. The demand for capital market consultancy services is rising due to heightened market activities and regulatory complexities. According to KBV Research, the global strategy consulting market is projected to reach around US$95 billion by 2031, growing at a compound annual growth rate (CAGR) of 11.3% from 2023 to 2031. This trend is further evidenced by the 66 IPOs listed on Nasdaq during the first half of 2024, representing a 71% success rate for Nasdaq-eligible operating company IPOs in the U.S. market. These trends highlight the substantial market opportunities for VCCG to expand its service offerings and client base. With a dedicated focus, VCCG will be better positioned to meet the increasing demand for expert consultancy services in IPOs, M&As, and strategic capital market planning.
The carve-out listing is expected to be completed by the end of the first quarter of 2025, subject to customary closing conditions and the satisfaction of regulatory requirements.
“This carve-out represents a pivotal step in our growth strategy, enabling both VCIG and VCCG to refine their focus and align their resources more effectively. Building on our proven track record of successfully listing companies such as VCI Global Limited, YY Group Holding Limited, and Founder Group Limited, we are committed to delivering substantial value to shareholders. We look forward to welcoming more Nasdaq IPOs in 2025, capitalizing on emerging opportunities in their respective markets,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
About VCI Global Limited
VCI Global is a diversified holding company headquartered in Kuala Lumpur, Malaysia. The Company operates through five core businesses: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. In Capital Market Consultancy, we provide IPO solutions, investor relations (IR) and public relations (PR) consultancy, and M&A consultancy. Our Fintech arm offers a proprietary financing platform. In Real Estate, we offer specialized real estate consultancy services. The AI business delivers GPU servers, GPU cloud computing services, AI and large language model (LLM) solutions, while the Robotics segment focuses on post-harvest robotics systems. Our Cybersecurity segment provides comprehensive cybersecurity consultancy services and solutions. Committed to fostering innovation and delivering exceptional value, VCI Global has established a strong presence across the Asia-Pacific region, the United States, Europe, and the Middle East, driving growth and transformation on a global scale.
For more information on the Company, please log on to
https://v-capital.co/
.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
For media queries, please contact:
Landon Capital
info@landoncapital.net
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
