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Credit Bureau Asia launches IPO of 30 mil shares at 93 cents per share; market cap expected to be at $214.3 mil

Felicia Tan
Felicia Tan • 3 min read
Credit Bureau Asia launches IPO of 30 mil shares at 93 cents per share; market cap expected to be at $214.3 mil
The board of CBA says it intends to recommend dividends of at least 90% of its earnings for FY2021 and FY2022.
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Credit Bureau Asia, which announced its intention to list on the Mainboard of the SGX on Nov 17, has registered its prospectus with the Monetary Authority of Singapore (MAS) on Nov 26.

The company will be launching its IPO with 30 million shares at 93 cents per share.


See: Credit Bureau Asia set for mainboard listing

The shares will comprise 1.5 million offering shares by way of public offer and 28.5 million offering shares by way of placement.

Of the 30 million shares, 1 million of them are new shares to be issued by Credit Bureau Asia and 29 million are vendor shares which are being sold by CBA’s executive chairman and CEO Kevin Koo and William Lim, the company’s executive director.

The offering shares will represent about 13.0% of the total number of 230.4 million issued shares as at the date of the listing.

In addition, Aberdeen Standard Investments, Affin Hwang Asset Management, Eastspring Investments and Tokyo Shoko Research (or the cornerstone investors) have signed agreements to subscribe for a total of 28 million new shares at the offering price.

The cornerstone shares will constitute about 12.2% of the total number of the 230.4 million issued shares.

Based on the offering price of 93 cents, CBA says its estimated post-IPO market capitalisation is expected to be at $214.3 million.

The offering will close at 12pm on Dec 1, 2020 and the listing and trading of CBA’s shares is expected to begin at 9am on Dec 3, 2020.

The board of CBA says it intends to recommend dividends of at least 90% of net profit after tax attributable to its shareholders (or earnings) for the financial years ended Dec 31, 2021 and Dec 31, 2022.

CIMB Bank Singapore is the issue manager for the IPO and CGS-CIMB Securities is the underwriter and placement agent.

The group says it intends to use the net proceeds of some $23.6 million from the offering and the issuance of the cornerstone shares. About $7.1 million will go toward organic growth initiatives including product development and credit score enhancements.

Another $11.8 million will go towards strategic investments, regional expansion and acquisitions.

An additional $4.7 million will be used for general corporate and working capital purposes.

CBA, through its subsidiary Credit Bureau Singapore, has a 99.9% market share in Singapore’s financial institution data business. Its associated companies are the sole licensed FI data business providers in Cambodia and Myanmar.

For the 1HFY2020 ended June, CBA reported a net operating cash flow of $10.8 million and a cash conversion ratio of 83.3%.

The group says it plans to expand its credit bureau membership base to include insurance companies, utilities, moneylenders and leasing companies as well as upcoming digital banking businesses.

In Oct 2020, Credit Bureau (Singapore) was awarded a tender by the Ministry of Law to develop, establish and operate the Moneylenders Credit Bureau.

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