CTOS Digital Makes Stellar Debut At The Main Market

The much anticipated IPO of the year did not fail to deliver, CTOS Digital made a strong debut on the Main Market of Bursa Malaysia Securities registering a 36% premium as it opened at RM1.50, above the issue price of RM1.10 per share.

Its first record of trade was 13.7 million shares as for the share price movement for the day, after reaching a peak of RM1.76 in mid day, the share price closed at RM1.62.         

Overall investors would have been pleased with the debut, CTOS Digital attracted RM1.38 billion for its retail IPO tranche, the largest retail demand for an IPO since 2013. It also garnered a record 23 cornerstone investors in its book-building exercise, with renowned names such as Employees Provident Fund Board, Permodalan Nasional Berhad, Aberdeen Standard Investment, AIA, Eastspring Investments, FIL Investment Management and JP Morgan Asset Management.

At the virtual listing ceremony today, Group Chief Executive Officer of CTOS Digital Dennis Martin said: “Our IPO journey thus far has marked pivotal milestones, and we are very heartened by the overwhelming support from both institutional and retail investors.

“The tremendous support received motivates us to extend our resilient performance even further. We reported strong double-digit growth rates in the most recent quarter and first half of the year, which indicates our positive growth trajectory in the credit reporting industry.”

CTOS Digital registered 23% higher revenue of RM37.8 million in the second quarter ended June compared to RM30.7 million in the previous corresponding quarter. The N=normalised net profit attributable to shareholders (PATAMI) jumped 64% to RM15.0 million in 2Q21, from RM9.1 million in 2Q20.

Dennis added: “Going forward, we will focus on providing more innovative digital solutions across the entire lifecycle of financial institutions, companies, and small- and-medium enterprises, as well as supporting individuals on their own financial literacy.”

The proceeds from the IPO will go into growing its product offerings and is looking to expand its operations both organically and through acquisitions within the ASEAN region.

CTOS Digital targets a payout ratio of 60% of PATAMI for each financial year on a consolidated basis after taking into account working capital, maintenance capital and committed capital requirements of the Group.


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