Credit Bureau Asia eyes mainboard listing on SGX

CREDIT Bureau Asia (CBA), a credit and risk information solutions provider, has lodged a preliminary prospectus for a mainboard listing on the Singapore Exchange (SGX).

For the financial year ended Dec 31, 2019, CBA posted a net profit of S$7 million, up 27.3 per cent from S$5.5 million a year ago.

Earnings per share stood at 3.49 Singapore cents, versus earnings per share of 2.71 cents in the preceding year.

Revenue rose 8.6 per cent to S$40.6 million in FY2019, while earnings before interest, taxes, depreciation, and amortisation (Ebitda) gained 41.2 per cent to S$23.3 million.

CBA's business has two core segments, namely the financial institution data business and the non-financial institution data business, covering both consumer and commercial credit risk information.

The group believes it has "strong growth prospects" in light of the impending issuance of digital banking licences and the upcoming commencement of the Credit Bureau Act in Singapore.

Net proceeds from the initial public offering (IPO) will be used for organic growth initiatives, strategic investments, regional expansion and acquisitions, as well as general corporate and working capital purposes, CBA said.

It added that organic growth initiatives could include product development and credit score enhancements, software and platform development, as well as investments related to the development of its corporate credit reporting business in Singapore.

CIMB Bank Berhad, Singapore branch is the issue manager for the IPO, while CGS-CIMB Securities (Singapore) is the underwriter and placement agent.