Investment Highlights

High Return Potential: 339% to 1217% Capital Gain
Seed Investment in Growing Consulting Firm
Tax-Efficient Business Environment
Low 15% Operating Costs, High 65% Gross Margin
Cash Flow Positive with $200k Monthly Revenue per Project
Strategic Location and First-Mover Advantage
5% Corporate Tax in JSSEZ, 19% Profit Margins
IPO Exit Strategy Targeted for 2025

Raising
USD 3Million

US$3 million PECD convertible bonds with a conversion set for (6) six million shares within three years.

USA Investor

International Investor

Mid-sized firms, particularly those with market capitalizations under $100 million, face significant challenges in accessing the sophisticated consulting services they need to grow and compete in today's dynamic business landscape.

These companies are often overlooked by large consulting firms, which prioritize larger clients, and are underserved by boutique advisors, who lack the scale and expertise to address complex strategic needs.

1. Asia-Pacific Investment into the U.S.: Over US$1 trillion is currently invested in the U.S. from firms based in the Asia-Pacific region, underscoring the deep financial ties between these two markets. As this investment flow continues to grow, U.S. firms must establish strong footholds in Asia-Pacific to maintain competitiveness and capitalize on reciprocal opportunities.

2. Growing U.S.-Asia-Pacific Trade: In 2022, U.S. trade with the Asia-Pacific region reached $2 trillion, and this figure is set to expand further. U.S. companies are increasingly aware of the need to participate in this growth to harness the vast market potential of the world’s fastest-growing economies.

3. U.S. Indo-Pacific Strategy: The U.S. Indo-Pacific Strategy emphasizes strengthening trade and economic ties with Asia-Pacific nations, promoting regional stability, prosperity, and peace. This strategic alignment encourages U.S. firms to actively engage in the Asia-Pacific market. JIC is well-positioned to support these firms, providing corporate strategy consulting and financial advisory services, which align with both the U.S. government’s strategic objectives and the growing needs of businesses in the region.

4. Demand for Tax-Efficient Business Environments: Many firms are looking for tax-efficient regions to establish their operations in order to better serve the global market. The Johor-Singapore Special Economic Zone (JSSEZ), where JIC operates, offers a highly favorable tax environment with a 5% corporate tax rate, making it an attractive base for companies seeking to reduce tax liabilities while expanding their global reach.

5. Asia-Pacific Consulting Market: The Asia-Pacific consulting market is booming, valued at US$25 billion, and growing at a staggering rate of 30% annually. The demand for business strategy, financial consulting, and corporate advisory services continues to surge as companies in the region seek to scale their operations and optimize performance. JIC is strategically positioned to capture a significant share of this fast-growing market.

6. Financial Services Consulting Growth: Of the total consulting market, US$15 billion is allocated specifically to financial services consulting. This includes corporate finance, mergers and acquisitions, and restructuring services, which are JIC’s core offerings. The region’s growing complexity and evolving financial landscape present significant opportunities for JIC to deliver specialized consulting services to mid-sized firms.

Johor International Consultant (JIC) is strategically focused on serving a niche market of mid-sized firms, particularly those with market capitalizations under $100 million.

Mid-Sized Firms as Core Customers: JIC’s primary target is mid-sized firms, with market capitalizations of less than $100 million. These firms often have significant growth potential, but they are underserved by both large consulting firms and smaller boutiques. JIC is uniquely positioned to provide the resources and expertise necessary to address the specific needs of these companies, offering high-touch, customized services at competitive rates.

Project Size and Duration: The average consulting project with JIC is valued at $5 million, typically spread over a two-year assignment. This long-term engagement ensures that JIC can provide comprehensive support, from strategy development to execution while building strong, ongoing relationships with clients.

High-Profit Margins: JIC operates with a highly efficient cost structure. The company achieves a 65% gross margin, thanks to its specialized expertise and the ability to command premium fees for its services. Meanwhile, operating costs are kept to a minimum, accounting for just 15% of total revenue. This lean approach allows JIC to maintain high profitability while delivering value to clients.

Target Client Needs and Growth Appetite: JIC’s clients have a strong appetite for growth, often seeking consulting services in key areas such as mergers and acquisitions (M&A), corporate finance, public listing, growth and expansion strategies, and corporate restructuring. These mid-sized firms are actively seeking opportunities to scale their operations, streamline their finances, and expand into new markets. JIC’s deep expertise in these areas allows it to deliver tailored solutions that directly address these growth objectives.

Client Spend and Profitability Growth: JIC’s clients typically exhibit aggressive growth trajectories, with annual spending on consulting services expected to increase between 30% to 50%. This reflects the expanding scope and complexity of their business needs as they scale. JIC, in turn, enjoys profitability rates of 20% of total revenue, demonstrating the strong financial return associated with serving these high-growth clients.

JIC’s focus on mid-sized firms positions the company as a valuable partner for businesses that are often underserved in the market, offering them the strategic insight and network they need to drive growth while maintaining profitability for JIC.

Johor International Consultant (JIC) is strategically positioned at the forefront of business operations in the Johor-Singapore Special Economic Zone (JSSEZ), establishing itself as a pioneering consulting firm in this dynamic environment.

This unique positioning provides JIC with several competitive advantages that are critical to its growth and success in the Asia-Pacific consulting market.

First Mover Advantage in the JSSEZ: As the first consulting firm to commence operations in the JSSEZ, JIC has established a significant competitive edge. This early entry allows JIC to build brand recognition and credibility in the region, positioning it as a leader in a market ripe for growth. The firm’s pioneering status enables it to capture key opportunities and attract clients seeking to benefit from the unique advantages offered by the JSSEZ.

Direct Access to Local Markets: JIC enjoys direct access to local businesses and stakeholders within the JSSEZ, facilitating meaningful relationships and collaborations. This local presence enhances JIC’s ability to understand regional market dynamics, cultural nuances, and business practices, enabling it to provide tailored solutions that resonate with clients. Additionally, direct access fosters trust and rapport, which are vital for successful consulting engagements.

Extensive Local Experience and Expertise: With years of experience in local business dealings, JIC has developed a wealth of expertise in navigating the intricacies of the JSSEZ and its regulatory environment. The firm’s seasoned professionals bring valuable insights and a deep understanding of the local market, positioning JIC as a trusted advisor for clients looking to expand or optimize their operations in the region.

Expansive Network: JIC has cultivated an expansive network of contacts within the JSSEZ, including government agencies, local businesses, and industry leaders. This network not only enhances JIC’s operational capabilities but also provides clients with valuable connections that can lead to new opportunities, partnerships, and market insights. Leveraging this network, JIC can facilitate introductions and collaborations that drive business success for its clients.

Strategic Advantages: Operating in the JSSEZ offers JIC numerous advantages, including direct access to a growing market, strong local relationships, and favorable tax incentives (with a low corporate tax rate of 5%). The strategic location of the JSSEZ enables JIC to serve both local and international clients effectively, creating a platform for sustainable growth. Furthermore, the firm’s established global brand lends credibility and reassurance to clients, reinforcing JIC’s position as a leader in the consulting space.

Cost Controls

Effective cost management is a cornerstone of Johor International Consultant (JIC) operational strategy, enabling the firm to maximize profitability while delivering high-quality consulting services. By implementing rigorous cost control measures, JIC ensures that its operational expenses remain low and manageable, allowing for sustainable growth and improved financial performance.

Lower Operating Costs: JIC maintains a lean operating cost structure, with total operating costs accounting for just 15% of revenue. This efficient allocation of resources enables the firm to achieve high-profit margins while still providing competitive pricing for its services. The focus on cost control allows JIC to reinvest savings into strategic initiatives that enhance client offerings and foster growth.

Access to Experienced and Educated Staff: The firm’s ability to leverage the expertise of experienced and educated professionals in the Johor-Singapore Special Economic Zone (JSSEZ) is a key driver of JIC’s operational efficiency. The local talent pool is not only highly skilled but also cost-effective, allowing JIC to maintain a high standard of service delivery without incurring excessive personnel costs. This access to qualified staff positions JIC to respond swiftly to client needs and market demands.

Billable Hours at U.S. Rates: JIC is able to charge billable hours at competitive U.S. rates, creating a favorable revenue stream that supports its business model. By aligning billing rates with the established market standards in the U.S., JIC can attract clients who value high-quality consulting services while maintaining robust revenue generation. This pricing strategy helps ensure that JIC remains financially sound, even while delivering exceptional value to its clients.

No Capital Expenditures or Depreciation: JIC’s operational model is designed to minimize financial burdens associated with capital expenditures, depreciation, interest, and amortization. By avoiding significant upfront investments in infrastructure or expensive assets, JIC can maintain greater financial flexibility. This model allows the firm to focus on its core consulting services without being weighed down by the complexities and costs associated with capital investments.

If the investor subscribes for shares at $1 each, the possible capital gain can be 339%, 778% and 1217% for FY 1,2,3 respectively based on the forecasted profit after tax and a price earning multiple of 15 times.

The minimal IPO price of $4 would mean the investor would have enjoyed a capital gain of $3 ($4 IPO price less $1 subscription price), a possible upside of 3 times on the $1 invested.

PECD aims to be listed on a main North America bourse by the end of 2025.

The above is an illustration of the possible gains and do not portray as a guarantee of performance. Like in any other investments, there are the risks that the forecast and gains may not be realized for many reasons. These forecasts are tabled based on certain assumptions and best efforts and they can vary due to inaccuracies, wrong assumptions, ineffective execution and other reasons. Investors need to study all forecasts carefully and make informed decisions.

Shareholding

PECD has a clearly defined capital structure that reflects its commitment to both public shareholders and strategic partnerships. The company’s shareholding distribution and upcoming plans for consolidation are crucial for understanding its equity framework and market positioning:

Shareholding Distribution: As of the latest quarterly report for the period ending 30 June 2024, JIC has a total of 675 million shares issued. Of these, 75 million shares are held by public shareholders, providing a strong base of retail and institutional investors who have a vested interest in the company’s success. The remaining 600 million shares are held by Astra Capital Pte Ltd, a significant strategic partner that plays a critical role in supporting JIC’s growth initiatives and operational strategy.

Planned Share Consolidation: To enhance the company’s market appeal and streamline its capital structure, PECD plans to consolidate its shares at a ratio of 100 shares to 1. This consolidation will result in approximately 6.75 million shares outstanding post-consolidation. The move is designed to increase the nominal value of the shares, potentially making them more attractive to institutional investors and improving liquidity in the market.

Strategic Rationale: The decision to consolidate shares reflects PECD’s strategic vision to strengthen its position in the market and provide greater value to shareholders. By reducing the total number of shares outstanding, PECD aims to enhance earnings per share (EPS) and improve its overall valuation metrics. This consolidation is expected to bolster investor confidence and signal the company’s commitment to long-term growth.

Financial Reporting: The latest quarterly report, which covers the period ending 30 June 2024, provides transparency into PECD’s financial health and capital structure. This report is an essential tool for shareholders and potential investors, offering insights into the company’s performance, strategic direction, and the impact of share consolidation on overall shareholder value.

References: Latest Quarterly Report (Period Ending 30 June 2024)

PECD is actively pursuing a capital raise of $3 million through the issuance of convertible bonds. This strategic financial initiative is designed to support the company’s growth ambitions and enhance its capacity to deliver value to clients.

Issuance of Convertible Bonds: PECD plans to issue US$3 million convertible bonds with a conversion set for (6) six million shares within three years. This structure allows bondholders to convert their bonds into equity, specifically resulting in the issuance of (6) six million shares upon conversion. The convertible bond framework provides a flexible financing option that aligns the interests of investors with the long-term growth of the company.

Purpose of the Funds Raised: The capital raised through this bond issuance will be allocated specifically to cover the costs associated with client projects. By securing these funds, PECD can enhance its operational capabilities and better serve its clients’ needs, ensuring that they have access to the necessary resources for successful project execution. This approach not only strengthens client relationships but also positions JIC as a trusted partner in driving their growth initiatives.

Financial Impact: The successful raising of $3 million will significantly bolster PECD’s liquidity and financial strength, allowing the company to undertake multiple projects simultaneously. This capital infusion will enable PECD to provide funding for various project-related expenses, including consultant fees, third-party costs, and any additional resources necessary for the successful completion of client engagements.

Strategic Advantages: By leveraging convertible bonds as a financing mechanism, PECD minimizes immediate cash outflows while retaining the potential to convert debt into equity in the future. This strategy enhances PECD’s financial flexibility and allows the company to invest in growth opportunities without incurring substantial debt obligations.