SPY414.92-5.67 -1.35%
DIA332.96-5.20 -1.54%
IXIC14,030.38-130.97 -0.92%

Malaysia's CTOS targets $292 mln IPO in third quarter, sources say

05/11/2021 00:55
Malaysia's CTOS targets $292 mln IPO in third quarter, sources say

By Liz Lee

- Malaysian credit reporting agency CTOS Digital Bhd is looking to raise as much as 1.2 billion ringgit ($291.72 million) in an initial public offering aimed for the third quarter this year, two sources said.

The listing, which could value the company at 2.4 billion ringgit, could come as soon as the end of July, said the sources familiar with the deal, who sought anonymity as the process was private.

"There's been great interest from foreign and local institutions, and commitment expressed very early on," one of the sources said on Monday.

Both pointed to robust appetite for the offering, even at the early stages of structuring the deal.

CTOS did not immediately respond to an email query seeking comment.

In a draft prospectus filed last week with markets regulator Securities Commission, the company, which provides credit information and analytics solutions, did not say how much it planned to raise.

The IPO proceeds were earmarked to repay bank borrowings and make acquisitions within three years, it said in the prospectus.

Last year the firm acquired CIBI Information Inc in the Philippines and a stake of 20% in Thailand's Business Online Public Company Limited BOLm.BK.

The firm's largest shareholder, private equity firm Creador, will sell half of its 80% stake through the exercise, as will the firm's founders, who own 20%, another source said.

Creador declined to comment. Last year, it took another of its portfolio firms, Mr DIY Group MRDI.KL, public in a 1.5 billion ringgit IPO, which the sources say has helped bolster investors' confidence regarding the CTOS listing.

Home improvement retailer Mr DIY was Malaysia's largest IPO in three years when it listed last October, and its shares have risen more than 140% since.

The sources said some investors in the Mr DIY IPO were keen to join the CTOS offering, but declined to identify them.

Among its dozen cornerstone investors, Mr DIY counted funds such as BlackRock Inc, Aberdeen Standard Investments, Fidelity Investments, JPMorgan Asset Management and insurer AIA Bhd. nL4N2GX0JV

($1=4.1135 ringgit)

(Reporting by Liz Lee; Editing by Clarence Fernandez)

(([email protected]; Desk: +60323338039; Twitter: @livinglizly;))