Creador moves stake in Malaysia's CTOS between funds

The transfer was transacted at a price of MYR 1.35 per share. The stock has traded in a range of MYR 1.25 to MYR 1.40 for the past two months. It is down 6.2% year-to-date and was trading at MYR 1.35 as of early April 21, giving the company a market capitalisation of about MYR 3.1bn (USD 703m).

Creador describes CTOS as an integral part of its success and sustained performance. It acquired 80% of CTOS at a valuation of USD 100m in August 2014 via Fund II, which closed on USD 331m the prior year.

The private equity firm helped triple revenue and profit by the time of a MYR 1.2bn IPO in July 2021. It took MYR792 million off the table through the offering, reducing its 80% holding by about half. CTOS surpassed home improvement retailer Mr DIY as the largest domestic listing to date. Creador was also an investor in Mr DIY; it fully exited the company earlier this month.

Established in 1990, CTOS has come to reflect the gradual digitalisation of the Malaysian economy. The company, which collects helps individuals and businesses establish credit through the processing of non-traditional information, is now sometimes called the largest credit bureau in the country. Operations entered Thailand in 2020.

CTOS’ revenue grew from MYR 49m in 2014 to MYR 195m in 2022. Profit increased 63% between 2021 and 2022 to MYR 71.5m. Since Creador’s initial investment, the staff has expanded from 100 to more than 500.

In addition to credit reporting, the business model has grown to encompass a range of consulting, debt collection, and database services. Clients in these areas include banks, non-banking financial institutions, buy now-pay later companies, telecoms, and insurance, companies, among other organisations.

Creador closed its fifth fund earlier this year at the hard cap of USD 680m. It writes cheques of USD 40 to USD 60m. The fund is active across Southeast Asia, although Malaysia has historically been the dominant geography.

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• Topics
• Southeast Asia
• Trade sale
• PIPEs
• Financials
• Technology
• Malaysia
• Creador
• Financial Services