Credit Bureau Asia’s IPO receives strong investor interest

Credit Bureau Asia (CBA), which owns a 40 percent stake in Myanmar Credit Bureau, received 60.8 times more in applications from retail investors than the number of shares available in the public portion of its initial public offering (IPO) on December 2.

CBA said it received more than 4,000 valid applications for about 91.3 million shares. There were just 1.5 million shares available to the public for subscription. The company also attracted “strong interest” for its 28.5 million placement shares from institutional and other investors.With a total of 230 million issued shares at an IPO price of 93 Singapore cents, CBA is now valued at S$214.3 million, the company said.

CBA, which raised net proceeds of S$23.6 million from its IPO, will see its shares commence trading on the Singapore Exchange today. The strong interest shown in CBA’s IPO underscores investors’ confidence in the company’s “resilient cash-generative business model and growth plans,” said Kevin Koo, founder and chair of CBA.

Among its other investments, CBA, which provides credit and risk solutions, has a 40pc stake in Myanmar Credit Bureau, which was granted a non-exclusive licence in May 2018 by the Central Bank of Myanmar. It is the sole credit bureau in the country. Myanmar Credit Bureau will over time provide credit reports and other products such as data analytics, monitoring services and products that are tailored for customers as well as profiles on individuals and business entities through the collection of credit information and other related data.

This is expected to assist lenders in improving their risk assessment processes and evaluating the creditworthiness of potential borrowers in Myanmar, where the majority of businesses do not document their credit history and therefore do not qualify for loans needed for growth.

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Source : Myanmar Times

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