The financial brief.
Two companies. One asset. Three scenarios. Every number on this page traces back to the bottom-up financial model and the locked cap table — RM 3m founder pre-money + RM 5m raise (RM 1.2m as RPS) → RM 6.8m equity post-money for Marketing Co.
post-money
MOIC · 9.5% IRR
at RM 300m IPO
payback year
Will it actually make money? Five questions.
The honest test of any pre-revenue thesis — every category-creating play has to answer these. PlayTown's answers are below, each with the proof point that backs it.
One asset. Two structurally separated cash flows.
Asset Co holds the tenancy + every fixture and earns a contractual Operator Fee. Marketing Co operates the venue, runs events, and licenses the brand to multi-site partners. The fee structure means Asset Co has yield-floor predictability; MarCo carries the growth optionality.
Asset Co Yield
- Holds Lowyat tenancy + every fixture, fit-out, play equipment
- Fixed-fee floor + variable-share Operator Fee from MarCo (RM 200k Y1 → RM 1,000k Y6+)
- 10-year SLN depreciation = RM 500k/yr Y1–Y10
- Renewal CAPEX Y5 / Y8 / Y10 (RM 300k / RM 500k / RM 250k)
- No RPS exposure · Annual overhead RM 60k
- Terminal Y12: residual fixture value RM 1m
Marketing Co Growth
- Operates the venue · pays Operator Fee to Asset Co
- External events business (Y2 ramp · 50%/yr to RM 2m · 40% EBITDA margin)
- Multi-site licence fees (Site 2 Y5 · Site 3 Y7 · 8% of gross revenue)
- RPS RM 1.2m held externally (8% coupon Y2–Y6, principal redemption Y6) — debt-like, off the equity table
- Terminal Y12 bear: RM 25.5m (10× Y12 EBITDA, no IPO)
- Listable on Bursa Green Pathway: ACE Y4 → Main Market Y7–8
MarCo operates venue + events + multi-site → distributable cash + Y12 terminal or IPO exit → MarCo investors
From close to public listing — four stages of dilution.
Every external dollar that enters MarCo dilutes existing holders. The retail calculator in the previous section reflects the full stack — ESOP × ACE × IPO float = 47.25% retention. Founder retains majority through ACE; significant dilution comes only at IPO.
Round close
ESOP carve-out
ACE round
Main Market IPO
What does RM 500,000 become?
Slide the ticket, pick a scenario. The calculator runs the full Y0–Y12 cash flow stream — operating distributions × your post-dilution stake + the exit event in the final year — and solves IRR by bisection on the actual cash flows. No geometric averaging. Every cell is audit-traceable.
IPO event breakdown
| Year | Asset Co | Marketing Co | Combined | Cumulative |
|---|
Asset Co = your stake × locked 12-year distributable cash stream (Y1–Y12) + RM 1m residual at Y12. Bisection IRR on the full cash flow.
Marketing Co entry is at RM 6.8m equity post-money (RM 8m post-money less RM 1.2m RPS liability). Bear case applies ESOP-only (10%) dilution and holds to Y12 terminal RM 25.5m. Base/Stretch apply the full dilution stack (ESOP × ACE × IPO float = 47.25% retention) and exit at Y8 at the IPO market cap.
Combined sums both companies' cash flow streams and solves IRR on the portfolio.
From Pre-launch to Main Market.
PlayTown follows the Bursa Green Pathway — a recognised progression from private to ACE Market to Main Market. Each stage funds the next leg of expansion. Pre-launch round raises the operating capital; ACE funds Centres 2–7; IPO funds Centres 8–12.
Pre-launch round In progress
Two-Co structure raises RM 10m total: Asset Co RM 5m (private placement, holds tenancy + fixtures) + Marketing Co RM 5m (RM 3.8m equity + RM 1.2m RPS). Founder cash commitment RM 4.5m of the RM 10m total.
Centre 1 opens — Rawang, 28 Feb 2027 Live operations
Phase 1A (187,000 sq ft): Indoor Kampung, Outdoor Twin Towers + Bunga Raya climbers, Splash Park, sports channels. Y1 modelled revenue RM 1.58m, ramps to RM 6.67m peak Y7.
Phase 1B build-out
Adds Treehouse anchor + expanded sports indoor + Phase 2A food plaza pre-build. Funded from retained operating cash flow + Phase 1B capital (RM 2m).
External events business + multi-site lead-gen LEAP optional
Events business hits ramp target. Centres 2–3 site search begins. Optional LEAP listing as Y3–Y4 liquidity bridge if needed for early shareholder exits.
ACE Market listing 25% new dilution
Marketing Co lists on Bursa ACE Market. ACE round funds Centres 2–3 build-out and working capital for multi-site expansion. Asset Co remains private (or distributes via REIT-like vehicle).
Centres 4–7 build-out · multi-site royalties activate
Each new centre adds operating revenue. MarCo's 8% multi-site licence fee compounds. By Y7, MarCo EBITDA tracks toward RM 30m run-rate (the threshold for credible Main Market valuation).
Main Market IPO RM 300m base · 30% float
Marketing Co transfers from ACE to Main Market. RM 300m market cap × 30% float = RM 90m raised — funds Centres 8–12. Stretch scenario at RM 500m mcap raises RM 150m. The IPO is the exit event for this round's equity investors who haven't already exited via secondary markets. (RPS already redeemed at Y6.)
Centres 8–12 + regional expansion
Post-IPO build-out. IPO proceeds (RM 90m base case) deploy across 5 new centres. By Y12, MarCo is a 12-centre operator with multi-site royalty stream. Asset Co separately exits at Y12 terminal value RM 1m residual (already returned 1.95× via distributions).
From one centre to twelve.
Rawang is Centre 1. Each subsequent location is an own-and-operate or licence-and-royalty deal — the multi-site model is calibrated for 8% revenue royalty per site, with the operating company doing the heavy lifting.
(Anchor)
build-out
events ramp
KL · Penang
Johor Bahru
Klang Valley S.
Sabah · Sarawak
RM 300m base
Post-IPO
Regional
Singapore?
+ regional
Where others failed — and how we don't.
FECs in Malaysia and Southeast Asia have a brutal track record. We mapped four named failure modes from public records and operator interviews, then designed PlayTown to structurally avoid each.
Per-visit pricing kills weekly-repeat economics
Outdoor-led FECs claim "weather-proof"
Mall-based FECs depend on mall traffic
Single-Co structure forces yield investors to take operating risk
Operating stress test
If MarCo revenue drops 35% in a given year (recession-grade demand shock), the Operator Fee still hits its fixed-fee floor: Asset Co receives at minimum RM 200k Y1 → RM 1,000k Y6+. Asset Co covers depreciation + overhead from this floor under every year of the 12-year hold. Yield investors do not get wiped out by an operating-side shock.
distributable cash
goes negative under
35% revenue stress
PlayTown Rawang — the architectural anchor.
Twin KLCC-inspired climber towers as the visual signature. Bunga Raya (Malaysia's national flower) anchors the secondary climber. The whole campus is a model of Malaysia itself — Indoor Kampung, Outdoor City/Twin Towers, Splash Pulau (islands).
The bet at the centre.
No external investor takes more risk on PlayTown than the founder and the landlord. Ken commits RM 6m of his own capital alongside the raise; Lowyat Group commits RM 6m of site infrastructure plus a multi-year membership-bundle pipeline. RM 12m of value at risk before any external investor enters.
Ken Ong · Founder/CEO
- Second-time operator. Previously founded MetaHub.
- Contributes RM 3m at pre-money as sole pre-money holder of MarCo
- Co-invests RM 1.5m in the raise alongside external investors
- External RPS RM 1.2m sits off the equity cap table (8% coupon Y2–Y6, principal Y6)
- Total cash commitment RM 4.5m aligned with public-market liquidity timeline
Lowyat Group · Anchor partner
- RM 6m site infrastructure investment (roads, utilities, frontage)
- 600–1,000 new homes/year bundle PlayTown memberships at handover
- Bandar Tasik Puteri — 750,000 reachable population, 165,000 families
- Lease commitment aligned with 12-year operating model
- Selangor's highest median household income at RM 13,296/mo
Want the full data room?
Full financial model spreadsheet, TCC Capital independent valuation, signed Lowyat term sheet, cap table waterfall, construction schedule. Available to qualified sophisticated investors after a 30-minute conversation with Ken.