CTOS submits for IPO on Bursa Malaysia, eyes valuation of over RM2b — sources

KUALA LUMPUR (March 19): CTOS Digital Sdn Bhd (formerly known as CTOS Holdings Sdn Bhd) has put in a submission for an initial public offering (IPO) exercise on Bursa Malaysia, said sources.

"They are looking at a potential valuation of over RM2 billion," said a source familiar with the plans.

When contacted about this, Creador's founder and chief executive officer Brahmal Vasudevan declined to comment.

The private equity firm has an 80% stake in CTOS.

In August last year, Brahmal told The Edge that his firm had hired bankers and was considering listing CTOS on either Bursa Malaysia or Nasdaq.

"It is still early days. We will have to look at the valuations and when is the right time to list.

"Our first preference on listing is always Malaysia as this will be an exciting fintech addition to our exchange," he said in August 2020.

The credit rating agency, which has its database online, offers a range of services that include e-KYC (e-Know Your Customer), advanced analytics, credit reports and scoring as well as fraud protection and monitoring.

According to publicly available information, CTOS made a revenue of RM129 million and a net profit of RM39 million in financial year 2019.

There were 19 listings on Bursa Malaysia last year that raised a total of RM2 billion, versus 30 listings in 2019 that raised the same amount of money.

Although the number of listings was lower in 2020, the IPOs collectively contributed a total of RM12.1 billion to the market capitalisation. This represented an increase of 51% from RM8 billion in 2019, according to Bursa Malaysia data.

In October last year, Creador-backed Mr DIY Group (M) Bhd undertook Malaysia's largest IPO since 2017, with a market capitalisation of RM10 billion, raising approximately RM1.5 billion from both institutional and retail investors.

From a listing price of RM1.60 in October 2020 five months ago, Mr DIY is trading 142% higher at RM3.87 today.

This year, there are six listings that have been undertaken and are currently proposed, according to Bursa Malaysia's website. CTOS has not yet appeared on the list.

Of the six, five are for the ACE Market, while the remaining one is for the LEAP market.

By
Lam Jian Wyn
https://www.theedgemarkets.com/article/ctos...2%80%94-sources

This post has been edited by sl3ge: Mar 19 2021, 01:17 PM

Brahmal stock, PE would be super high like MR DIY

This post has been edited by sl3ge: Mar 19 2021, 01:19 PM

Parking

I'm sure it's Main Market Listing..
and price sure above rm1/share, and might even be until rm3/share

there is a post in fb say PE might 50. lets see

i predict at least 30

PE 50??
walao seriously
that's damn high....

Just follow Brahmal

Free ticket to Holland?
😁

brahmal? go in dulu regret later.

things likely to happen:
1. largest OFS portion, goes back to the promoters
2. huge portion of proceeds to be utilised to pare down borrowings
3. sky high PE
4. absurb dilution of up to 90%, just like Mr DIY.

However, definitely won't mind investing into this company and pray that it would perform like mr DIY.

Actually..
What's up with Mr DIY...
The movement really mind-blowing....
Seriously didn't see it coming....
Really because of growth story or something else involved 🤔🧐

PE high like DIY but DIY still flying high

Guess it will be oversubscribe like crazy...need to dumb more to get higher chance of approved lots..

high PE, huge dilution (90%, means they pay 10 sen, you pay RM1 for the same thing), proceeds mainly to pay debts only.
OFS constituted to about 75% of the total proceeds and went back to the promoters, major shareholding cashing out huge portion.

Business wise, i remember they have a very very small SSSG, something like 0.4% of organic growth, which doesn't look appealing to me.

but well....... it was brahmal behind orchestrating the move.

so this time, don't miss it~!!

hmm...
so what I heard is somehow partial true after all

yup. cannot miss this time

But Mr DIY 1st day not perform

This post has been edited by sl3ge: Mar 19 2021, 04:46 PM

This one must taruk big amount. Hope can get.

Must have deep pocket...
It's not gonna be cheap like those Ace Market listing...
PE would be super crazy high 💪🎯

actually the edge cover quite a bit of his stories.
for example this one > https://www.theedgemarkets.com/article/insi...rasia-group-bhd

you gotta be careful whenever he emerges as a substantial shareholder.

I remember IPO day up a bit, but not too much la.
so long it's still above your cost, continue holding it, for a few months also nvm.

High like mrdiy??

I got mrdiy ipo but i sold too early.

yup.
don't know what his plan..
suddenly pop up as substantial holder... after some time ceases.... later pop up again at same counter

something like that...
same "owner"

sell high PE, then push up No tomorrow