-->

Type something and hit enter

Videos - Stocks



On


CTOS IPO retail portion oversubscribed by 27.57 times

KUALA LUMPUR (July 8): CTOS Digital Bhd (formerly known as CTOS Holdings Sdn Bhd) said the shares offered to the public under its initial public offering (IPO) – Malaysia’s largest so far this year – was oversubscribed by 27.57 times.  

The group, which is set to list on Bursa Malaysia’s Main Market on July 19, said it received 51,494 applications seeking 1.26 billion shares for the 44 million shares made available.

The Bumiputera portion was oversubscribed by 14.37 times, with 14,192 applications for 338.07 million shares received, CTOS said in a filing to the stock exchange.

Meanwhile, 37,302 applications for the remaining public portion amounting to 918.86 million shares were received, representing an oversubscription rate of 40.77 times.

The 30 million shares available for application via pink application form were fully subscribed, CTOS said.   

It added that for institutional offering, the joint global coordinators and joint bookrunners have confirmed that the 936 million IPO shares offered to Malaysian and foreign institutional and selected investors have been fully subscribed.  

“A total of 23 cornerstone investors subscribed for 54.4% of the institutional offering and the remaining IPO shares available for bookbuilding saw an overwhelming demand of over RM6.5 billion.

“Participants include renowned names such as Employees Provident Fund Board, Permodalan Nasional Bhd, Aberdeen Standard Investment, AIA, Eastspring Investments, FIL Investment Management and JP Morgan Asset Management,” said CTOS.  

The group’s CEO Dennis Martin said in a statement that the strong oversubscription in both the retail and institutional offerings showcased the investing community’s confidence in the group’s track record and strong growth trajectory.

“The credit reporting industry in Malaysia and ASEAN are at relatively early stages, compared to developed countries such as the US and the UK. As the leading player, we are well positioned to capitalize on the potential for growth across existing and new segments and verticals.

“Our ambition is to build a comprehensive credit reporting ecosystem in the region; the response from the investing public – both institutional and retail – reflects their confidence in our ability to realise these ambitions,” he said.

CTOS is expected to raise RM220 million from its listing exercise at the offer price of RM1.10 per share.  

A big chunk of the IPO proceeds, totalling RM155.2 million, will be used to pare down debts, while RM59 million will be earmarked for synergistic investment and acquisition of target companies.

The remaining RM6.1 million will be utilised to defray listing fees and expenses.

CTOS provides digital solutions across three core customer segments — the key account segment, which includes a significant number of leading financial institutions and corporates; the commercial segment, which includes a growing number of small-and-medium-sized businesses; as well as over 1.3 million individual customers who realise the importance of understanding their financial standing to better access credit.

The company posted a net profit of RM37.98 million for the financial year ended Dec 31, 2020 (FY20).  

It  also recorded RM42.3 million revenue in 1QFY21, 24.1% higher than RM34.1 million in the previous corresponding quarter, while normalised profit after tax and minority interest for the quarter jumped 73% to RM16.4 million from RM9.5 million.

Creador is the largest shareholder of CTOSl, with an 80% stake or 1.6 billion shares pre-IPO. Post-IPO, Creador’s stake is expected to shrink to 40% or 880 million shares, according to the group's prospectus.  

This is the second mega IPO that Creador is involved in less than a year. The fund listed home improvement retailer Mr DIY Group (M) Bhd for RM1.5 billion in October.

http://www.theedgemarkets.com/article/ctos-ipo-retail-portion-oversubscribed-2757-times

Back to Top
Back to Top
Back to Top