Credit Bureau Asia debuts on SGX S$1.15, 23.7% above IPO price

CREDIT Bureau Asia (CBA) began its trading debut at S$1.15 on the Singapore Exchange's (SGX) mainboard on Thursday, 23.7 per cent or S$0.22 above its initial public offering (IPO) price of S$0.93 per share.(see Amendment note)

The credit and risk information solutions provider was among the most active counters in early trade. As at 9.09am, the counter was trading 0.87 per cent or S$0.01 higher at S$1.16, with some 3.7 million shares changing hands.

The company on Wednesday evening announced that its public offering of 1.5 million shares had been subscribed 60.8 times, with "strong interest" for its 28.5 million placement shares from institutional and other investors.

Separately, cornerstone investors Aberdeen Standard Investments (Asia), Affin Hwang Asset Management, Eastspring Investments (Singapore) and Tokyo Shoko Research had subscribed for a total of 28 million new shares, constituting a 12.2 per cent stake in the company after completion of the offering and the issuance of the cornerstone shares.

With a total of 230.39 million issued shares, based on the IPO price, CBA's market capitalisation is about S$214.3 million.

The net proceeds which the company has raised amount to S$23.6 million, of which it intends to use S$11.8 million for strategic investments, regional expansion and acquisitions.

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Another S$7.1 million will be used for organic growth initiatives such as product development and business development, while the rest has been allocated for general corporate and working capital purposes.

Amendment note: An initial version of this article stated that the company's opening price was S$1.13, when it should be S$1.15. The article has been amended to reflect this change.