SGX invests US$1.5m in HeveaConnect

Singapore Exchange will take up 9.09% stake of HeveaConnect.

The Singapore Exchange Ltd. (SGX), through its wholly owned subsidiary Asian Gateway Investments Pte. Ltd., has invested $1.99m (US$1.5m) in HeveaConnect Pte. Ltd. for a 9.09% stake.

SGX will join existing shareholders Halcyon Agri Corporation Limited, ITOCHU Corporation, and DBS Bank Ltd.

Upon completion, Halcyon’s shares will be reduced to 49.91%, relinquishing its position as the controlling shareholder.

ITOCHU and DBS, meanwhile, will have 17.27% and 9%, respectively.

SGX’s investment is intended to boost HeveaCOnnect’s capability as the price discovery platform for sustainable natural rubber.

HeveaConnect aims to digitalise traditional natural rubber supply chain. Its platforms has pioneered a sustainability dashboard, providing global market participants with vital integrated supply chain.

“Our custom-built platform has streamlined order-to-fulfillment workflow to enhance decision-making and risk management. We also offer digital tools to collect valuable supply chain data on the ground,” HeveaConnect Chief Executive Gerald Tan said.

“Conforming to strict procurement policies, these services address the critical sustainability and traceability needs of our customers, financiers, and NGOs,” he added.

Since April 2019, the company has matched some 250,000 metric tonnes of physical natural rubber for global tyre majors, including Michelin and Bridgestone, witch gross sales of more than $433m (US$325m).