● Fraction, a fintech company based in Hong Kong and Thailand, has received approval from the SEC to provide a digital token offering system in Thailand (ICO Portal License).
● Fraction offers a comprehensive system for the issuance and trading of digital tokens, allowing asset registration as digital tokens with underlying securities and fractionalization of assets, along with a secondary market trading system.
● The first group of assets ready for registration and trading on Fraction includes projects from three leading Thai real estate companies: Magnolia Quality Development Corporation Limited (“MQDC”), Charn Issara Development Public Company Limited (“Charn Issara”), and Nirvana Daii Public Company Limited (“NVD”).
● Fraction was founded three years ago by a former CEO and partner of Lazard (LAZ.NYSE), a leading global investment banking firm, and a co-founder of several technology businesses.
● Fraction is currently raising new funds to expand its user base, introduce new assets for digital token registration, and expand into international markets.

Fraction (Thailand) Co., Ltd. is a subsidiary of Fraction Group, a leading fintech enterprise in Hong Kong, which has received approval from the Securities and Exchange Commission (SEC) to provide a digital token offering system (ICO Portal License) and will commence operations upon receiving SEC approval. Fraction has developed a platform to provide a comprehensive digital token offering system for the first time in the world, offering extensive services as follows:

● Services for converting assets into digital assets (NFT and Asset Digitization) and fractional ownership (Ownership Fractionalization) comprehensively.
● Initial Fraction Offering (IFO) for investors.
● A secondary market service to facilitate trading of digital tokens among investors.
● Acting as an intermediary for all related services to assist customers and investors throughout the entire process from start to finish.

With Fraction's ready-to-use platform that covers every step and is immediately operational, both individuals and legal entities can invest, offer, and manage ownership of all types of assets, regardless of how small their ownership stake may be. These assets may include city condos, beachfront resorts, and artworks, as well as managing personal funds, assets, and investors.

“We are proud to announce that we are the first unified platform under the supervision of the SEC that uses blockchain technology to transform tangible assets like real estate into digital assets, which can be registered for trading in the secondary market systematically. We have spent over three years developing the technology and preparing the legal structure, which has led to our approval from the SEC to be a digital token trading service provider. This will be one of the channels to help reduce financial inequality by allowing retail investors to access investments in large, attractive real estate projects that were previously inaccessible,” said Eka Nirapathpongporn, co-founder and CEO of Fraction (Thailand) Co., Ltd. Eka is a former CEO and partner of Lazard (LAZ.NYSE), a leading global financial advisory and asset management firm headquartered in New York.

“Fraction is a platform approved by the SEC, utilizing Distributed Ledger Technology (DLT) and Ethereum Blockchain to manage ownership of various types of assets that have been fractionalized into digital tokens. We are pleased to be among the pioneers in integrating investment financial technology and distributed ledger technology. While many have only talked about or attempted to do this, we have completed the development of Fraction's platform and have already begun preliminary operations in international markets, and we are ready to register assets on our platform,” said Shaun Sales, co-founder and CTO of Fraction (Thailand) Co., Ltd.


Fraction Co-founders: Shaun Sales, CTO (left) and Eka Nirapathpongporn, CEO (right)

Launching the first IFO with Grade A assets from leading real estate companies
Fraction has signed a Memorandum of Understanding (MOU) with Magnolia Quality Development Corporation Limited, Charn Issara Development Public Company Limited, and Nirvana Daii Public Company Limited to explore ways to raise funds for the first digital token offering (IFO) valued at 15 billion baht from the premier real estate projects of all three companies.

Fraction opens doors for everyone to access investment opportunities
With an innovative investment model, Fraction and the three real estate companies aim to revolutionize the investment landscape by providing opportunities for the general public to invest in high-value assets. For example, with an investment of just 5,000 baht, investors can participate in owning premier real estate projects such as:

● A 350 million baht penthouse in the Forestias project or the Mulberry Grove Sukhumvit project, which has a total project value in the tens of billions of baht from MQDC.
● World-class resorts like Sri Panwa in Phuket or beachfront villas from Baba Beach Club at Na Tai Beach in Phuket and Hua Hin from Charn Issara.
● Premier projects like Nirvana Beyond or Nirvana @WORK located in key growing areas of Bangkok.

Mr. Songkran Issara, CEO and Managing Director of Charn Issara Development Public Company Limited commented on the collaboration with Fraction, saying, “We have worked hard to create great investment opportunities in prime location assets across Thailand. In the past, such opportunities were not available to everyone, but today, the younger generation has the chance to access these assets as investors.”

Mr. Visith Malaisirirat, CEO of Magnolia Quality Development Corporation Limited (MQDC) stated, “MQDC is very pleased to collaborate with Fraction, a leader in financial technology (FinTech). This collaboration marks another significant step for MQDC, aligning with our vision and strategy to lead in continuous innovation development. Moreover, it is the first time in the world that investors can buy and sell real estate in the form of digital tokens on a centralized platform that covers all steps, providing an inclusive option for property ownership according to the Customer-Centric concept. We believe this model will drive the real estate industry and many other industries in the future.”

Mr. Sorasak Somwattana, CEO of Nirvana Daii Public Company Limited remarked about Fraction, “We understand that limited investment opportunities for those with substantial capital exacerbate social inequality. In recent years, many have spoken about asset digitization and fractionalization as potential solutions, but we have yet to see anyone succeed or be ready to move forward with us until today. Fraction will enable everyone to be part of this new wave of financial inclusion.”

Furthermore, maintaining liquidity and trading in the secondary market is crucial for the investment climate after securities are registered in the market, which aligns with practices in global capital markets. In this regard, KULAP, a company licensed by the SEC to operate as a digital asset broker, will serve as an initial regulator for secondary market trading after the IFO through its connection with the Fraction Global Liquidity Pool.

After receiving authorization from the SEC to commence operations, Fraction will work with MQDC, Charn Issara, and NVD to finalize the offering structure and prepare the IFO offering documents for submission to the SEC for approval. Fraction expects to begin accepting IFO reservations in the first quarter of 2022.