Malaysia’s biggest IPO in 2021 draws Aberdeen, AIA

(June 17): Malaysia’s CTOS Digital Bhd, which operates a credit reporting agency, is in talks to sign up Aberdeen Standard Investments and AIA Group Ltd as cornerstone investors for its planned initial public offering, according to people with knowledge of the matter.

Eastspring Investments Bhd, Fidelity International and several local asset managers are also in discussions to participate in what could be Malaysia’s biggest listing this year, the people said.

The company aims to sell shares in the Kuala Lumpur IPO for as much as RM1.10 each, said the people, who asked not to be named as the process is private. At that price, the IPO would raise about RM1.2 billion based on its draft prospectus’ indicative offering of 1.1 billion shares. The company is seeking a valuation of about US$585 million in a listing.

CTOS plans to file an official prospectus before the end of the month, when it will formally confirm the cornerstone investors, the people said. Deliberations are ongoing and the investor lineup as well as pricing could still change, they said.

CTOS has met with multiple international institutions and is in discussions with joint bookrunners, who will provide updates if any, Dennis Martin, group chief executive officer of CTOS, said in response to a Bloomberg News query. Representatives for AIA, Eastspring and Fidelity declined to comment, while a representative for Aberdeen didn’t immediately respond to requests for comment.

Malaysia’s IPO market has been slow to recover from the coronavirus pandemic, as rising cases prompted a return to a nationwide lockdown earlier this month. Companies have raised US$84.3 million in 2021 through first-time share sales, according to data compiled by Bloomberg. The largest IPO in the year to date is real estate developer Teladan Setia Group Bhd’s offering, which raised US$24 million in February, the data show.

CTOS, backed by private equity firm Creador Capital Group, provides data and analytical tools to clients to help them manage credit risk and prevent fraud, according to Creador’s website.

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