From Startup to PLC, the KarenSoft Story, 1st ICT-SME Interactive Forum, 7th April 2005

Event: 1st ICT-SME Interactive Forum: Expanding the Boundaries of ICT in Malaysia
Topic: From Startup to PLC, the KarenSoft Story
Organiser : MCA IT Resource Centre
Venue: Wisma MCA, KL
Date : 7th April 2005
Presenter: Chee Chong Hwa, CA(M), CPA - Executive Chairman/CEO

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Corporate Profile on KarenSoft Technology Berhad
1989 – 1996, the Early Years
1997, Birth of Mesdaq Vision and first exposure to VC
1998, Serious due diligence by a major local VC & entry of Biz Angel
Taste of Media Attention & Achievements
2000, dotCom boom & Chance to list on Mesdaq Market ?
2001, Enters MSC Venture Corporation…
2002, The Road to KLSE Mesdaq Market
Why list on the KLSE Mesdaq Market
Challenges KarenSoft faced during the listing process
Transformation from private to public company
Listed on KLSE Mesdaq Market on 24 January, 2003
Corporate Information
Strong Management Team
Core Products
KarenSoft ERP2, Seen Graphically
Market Positioning

The Early Years (1989-1996)
1989, CHCA Software Solution, first product, the KarenSoft FAR for DOS
1991, What if you die tomorrow ? Formation of KarenSoft Sdn Bhd/CCH Software Solutions Sdn Bhd
1993, Some serious marketing
1995, First HRIS product and beginning of MRP product
1996, Understanding the need to Brand, name change to KarenSoft Corporation Sdn Bhd/KarenSoft Solutions Sdn Bhd
1996, Pioneer Status for KarenSoft MRP2 for DOS
1996, First Windows product, the KarenSoft Web Browser, 1998 Pikom-Computimes IT Product of the Year
Achievements

The Road to KLSE Mesdaq Market
Acceptance by a MESDAQ Advisor to prepare and submit application
Meet milestones (if any) set by MESDAQ Advisor
Actual Submission of application including 5-year Biz Plan (24 January 2002)
Clearing 1st and subsequent round queries raised by KLSE . Presenting to/Visit by KLSE MESDAQ Market
Approval by KLSE
Approval by SC as an Approved Company (15 July 2002)
Underwriting of public issue (yellow, pink & white forms)
Final clearance of Prospectus by SC
Issue of Prospectus (18 December 2002)
Balloting of white forms (29 Jan 2003)
Actual listing (24 Jan 2003)

Enters MSC Venture Corporation
1999, First contact by Fan Kuan Weng
2000, Reminder at 1999 APMITTA Awards Dinner
Aug 2000, First visit by Nubly & Amin
Sept 2000, Forwarded Biz plan based on MV1 template
Oct 2000, Presentation to CEO and full team (8)
Oct-Nov 2000, Business Due Diligence
Dec 2000, Term Sheet Issued
Dec 2000, MV1 Board Approval
Jan 2000, Legal and Financial Due Diligence
Feb-Mar 2000, Haggling over subscription & shareholders agreements
April 2000, Disbursement of RM 2.3 Million

Why list on KLSE MESDAQ Market ?
KLSE MESDAQ Market is a separate board to cater for high growth or high tech companies such as KarenSoft Technology Berhad
Strict due diligence by MESDAQ but no need to have 2nd Board profit track record
To raise funds for R & D, local and overseas expansion
To have a higher profile which is good for Branding & Marketing
To show customers that we are here to stay
To encourage staff retention via ESOS
To allow angel and institutional investors an exit point

Challenges faced by KarenSoft in Listing
Must have funds to pay upfront to reporting accountants, due diligence lawyers and MESDAQ Advisors etc
Balancing the need to perform and yet concentrating on meeting Advisors, KLSE & SC requirements
Appointing the right Advisor i.e cost is not the only factor
Placing out shares during a bearish market
Competing for Media attention

Transformation from Private to Public Company
Shareholders Approval to legally change from Sdn Bhd to Bhd
Change of mindset i.e learning to behave as a Public Company
Search and appointment of experienced Independent Directors
Formation of Board Committees such as Audit, ESOS and Remuneration

Corporate Governance

Investors Relations

Media Recognition
New Straits Times
The Sun Daily
The Star
Other Interesting Articles