The problem anti-dilution addresses

An investor subscribes for shares at RM10 each. Eighteen months later the company raises a "down round" at RM6 per share. Without anti-dilution protection, the investor’s economic interest is diluted both by the new issuance and by the implied repricing. Anti-dilution clauses adjust the conversion price of the investor’s preference shares (or trigger top-up share issuances) to compensate.

Full ratchet — the harsh one

Pretend the early investor had paid the new low price all along: their price is reset all the way down to RM6, no matter how few cheap shares were actually issued. They get a large top-up, and the founders absorb all the dilution. (The name comes from a ratchet that only clicks one way — the price drops to the lowest level and locks there.) It’s aggressive and investor-friendly, and rare in Malaysia outside distressed deals.

Weighted average — the fair, common one

Adjust only part-way, based on how many cheap shares were issued and at what price. A small down round means a small adjustment; a big one means a bigger adjustment — so the pain is shared between founders and the investor. This is the market standard in Malaysia. It comes in two versions:

  • Broad-based— counts all the company’s shares in the maths, which softens the adjustment. Gentlest on founders, and the usual default.
  • Narrow-based — counts fewer shares, so the adjustment bites harder on founders. Less common.

Bottom line: full ratchet protects the investor fully and the founders pay for it; weighted average shares the hit. As a founder, push for broad-based weighted average.

The statutory baseline: section 85 pre-emption

Even without a contractual anti-dilution clause, existing shareholders have a statutory pre-emption right under section 85 of the Companies Act 2016: new shares of the same class must be offered to existing holders pro-rata, unless the constitution provides otherwise. Section 85 can be set aside — but exactly how is not always clear-cut. Whether a shareholder resolution approving a specific issuance can itself set aside section 85, without separate express waiver wording, is unsettled — so the safer course is a clear, express waiver, and confirm the current position before relying on the resolution alone.

Typical carve-outs

Anti-dilution adjustments usually do not trigger on:

  • Issuances under an approved ESOS / option pool;
  • Issuances on conversion of existing convertibles;
  • Issuances as consideration in approved M&A transactions;
  • Issuances to strategic partners approved by the board (or by a defined majority of shareholders).

Drafting points

  • Specify the formula precisely."Weighted average" can be calculated more than one way, so agree one version in the documents and apply it consistently. Don’t leave the term undefined.
  • Define "down-round". Does it trigger on any new issuance below the prior round price, or only on a formal financing round?
  • Pay-to-play. Some investors lose anti-dilution protection if they do not participate pro-rata in the down round. Worth considering for the next round.

If you are negotiating a term sheet that includes an anti-dilution clause, or you are reviewing existing investment documents, please reach out before signing. The formula chosen now sets the dilution outcome years later.

反稀释条款要处理的问题

投资人以每股 10 令吉认购股份。18 个月后，公司以每股 6 令吉进行「down round」。若无反稀释保护，投资人的经济利益将同时遭受新发行带来的稀释，以及隐含重新定价带来的稀释。反稀释条款会调整投资人优先股的转换价格（或触发补发股份）以作补偿。

全比例棘轮——较狠的一种

设想早期投资人一直都是按新的低价入股：无论实际只发行了多少廉价股份，其价格都一路重设至 6 令吉。他们获得大量补发股份，而稀释全由创办人承担。（其名称源自只能单向咬合的棘轮——价格降至最低后即锁定。）此方式激进且偏向投资人，在马来西亚除困境交易外较为罕见。

加权平均——较公平、较常见的一种

仅作部分调整，依实际发行了多少廉价股份及以何价格而定。小幅 down round 对应小幅调整，大幅则对应较大调整——故代价由创办人与投资人分摊。此为马来西亚的市场标准，分为两种版本：

  • 宽口径——计入公司全部股份，使调整更为温和。对创办人最为宽松，亦为通常默认。
  • 窄口径——计入较少股份，调整对创办人更为严苛。较少出现。

归结而言：全比例棘轮全面保护投资人，由创办人承担代价；加权平均则分摊冲击。身为创办人，应争取宽口径加权平均。

法定基准：第 85 条之优先认购权

即便无合同反稀释条款，《2016 年公司法令》第 85 条仍赋予现有股东法定优先认购权：同类别新股须按比例向现有股东要约，除非公司章程另有规定。第 85 条可被排除——但具体如何排除，并非总是清晰明确。股东就特定发行通过之决议，能否在无另行明示「放弃」措辞之情形下排除第 85 条，目前尚无定论——因此较稳妥的做法是采用清晰、明示的放弃条款，并在仅依赖决议之前确认现行立场。

常见的不触发情形

反稀释调整通常不在下列发行下触发：

  • 经批准之 ESOS／期权池下之发行；
  • 因现有可转换工具转换而进行之发行；
  • 作为已批准并购交易之对价的发行；
  • 经董事会（或经约定多数股东）批准向战略合作方之发行。

起草要点

  • 精确指定公式。「加权平均」存在多种算法，故应在文件中约定一种版本并贯彻使用，切勿令该术语处于未定义状态。
  • 对「down round」作明确定义。是任何低于上一轮价格之发行皆触发，还是仅正式融资轮触发？
  • "Pay-to-Play"机制。部分投资人若未按比例参与 down round，将丧失反稀释保护。这一机制值得在下一轮考虑。

若您正在协商含反稀释条款之投资意向书，或正在审视既有投资文件，建议在签署前与本所联系。今日所选定的公式，将决定数年后的稀释结果。