IPO Malaysia: CTOS offering up to 1.1 billion shares in Main Market

It does seem that IPO Malaysia is getting hotter with each passing month. I just hope that COVID-19 will not derail this uptrend. We have a well known brand name lining up for a listing in Bursa’s Main Market. CTOS is a company whose name most of us would have heard of even if we may not have used its services, yet. This listing will not be the tens and hundreds of million like usual yeah. It’s a listing of a company with a valuation of over RM1 billion.

Header Image is from https://ctoscredit.com.my/

Article in theedgemarkets.com CTOS earned a net profit of RM37.98 million in the financial year ended Dec 31, 2020. It will be offering up to 1.1 billion shares at a price to be revealed later as per the draft IPO prospectus posted on the Securities Commission Malaysia website.

Of the 1.1 billion shares to be offered to the investing public, 900 million will come from existing shareholders, while the remaining 200 million will be made available via the issuance of new shares. Of the 900 million shares up for sale, Creador’s unit Inodes will offer 720 million shares, while 81 million shares will come from each of the co-founders Chung Tze Keong and Chung Tze Wen, and 18 million shares from June Ng. 

CTOS intends to use its IPO proceeds to pare down debts. As at March 31, 2021, the company’s total borrowings stood at RM163.5 million. Please do read the article in full here: Article in theedgemarkets.com

Same due diligence based on what we want to invest into

Do we know what CTOS does to earn its profits? Do we know if they have a strong competitor? If yes, is the market actually big enough for CTOS and all its competitors? One way to also know is to ask 10 of our friends if they are a CTOS user. Next question would be whether they would be willing to pay to get a credit score so as to be able to make adjustments to it and increase their chances of getting a loan. Based on the many cases of bank rejections for loan applications, it does seem that credit score is one important factor that everyone should be aware of.

By the way, in many advanced countries, many consumers seek the help of credit repair companies to understand why their credit score is low and what they could and should do about it. We just need to decide if this is a trend which is becoming prominent here as well. Timing matters as well.

Happy deciding yeah.

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