Creador-backed CTOS eyes Main Market listing

TheStar Tue, May 04, 2021 08:20am - 4 days ago


Based on the draft prospectus, CTOS’ initial public offering (IPO) exercise involves 1.1 billion shares, representing up to 50% of its enlarged issued share capital.

PETALING JAYA: Credit reporting firm CTOS Digital Bhd, which seeks to be listed on the Main Market, plans to use proceeds from its public issue of shares to repay bank borrowings and to fund future acquisitions.

As of March 31, the group’s total borrowings stood at RM163.5mil against RM14.36mil in cash and bank balances, according to its draft prospectus filed with the Securities Commission yesterday.

On new acquisitions, CTOS said it is exploring opportunities within Malaysia and in the Asia-Pacific region.

“As at March 31, we have identified a target business in the Asia-Pacific region but such acquisition plan is still in a preliminary discussion phase, ” it added.

Based on the draft prospectus, CTOS’ initial public offering (IPO) exercise involves 1.1 billion shares, representing up to 50% of its enlarged issued share capital.

Of the 1.1 billion shares, up to 900 million existing shares would be made available through an offer for sale, apart from a public issue of up to 200 million new shares.

The bulk of the 1.1 billion IPO shares or 936 million shares would be offered to Malaysian and foreign institutional investors, while the remaining 164 million shares would be opened for retail investors.

Formerly known as CTOS Holdings Sdn Bhd, the group is 80%-owned by private equity firm Creador.

It is noteworthy that Creador has backed MR DIY Group (M) Bhd, which was listed on the Main Market in Oct 2020.

Based on the draft prospectus, CTOS has registered a double-digit net profit margin in the past three financial years, with a net profit margin of 27.9% in the financial year ended Dec 31,2020 (FY20).

A net profit of RM39.2mil was recorded in FY20, against total revenue of RM140.5mil.

Maybank IB and RHB IB are the joint principal advisers for CTOS’ IPO.






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