KUALA LUMPUR (April 10): CIMB Group Holdings Bhd has no plans to list its wholly-owned subsidiary Touch 'n Go Sdn Bhd's (TNGSB) 51%-owned entity TNG Digital Sdn Bhd at this point in time.
"No. This is not something we are contemplating at this point in time,” CIMB's group ventures & partnerships chief executive officer (CEO) Effendy Shahul Hamid said in an emailed reply to queries from theedgemarkets.com.
Effendy did not elaborate.
Ant Financial owns the remaining 49% of TNG Digital, according to CIMB.
In July 2018, it was reported CIMB former group CEO Tengku Datuk Seri Zafrul Tengku Abdul Aziz had said the financial services provider was not planning to list TNGSB on the Main Market of Bursa Malaysia.
“We want to see Touch 'n Go produce more results first. I think one year is a bit too soon for the company to create value and have the necessary track record that will fetch the right IPO (initial public offering) valuation,” Zafrul told reporters then, after delivering a keynote address at The Economic and Leadership Forum 2018.
“At the end of the day, we (CIMB) want to make sure that it (Touch 'n Go) creates value before proceeding with any listing plan. If we believe that we may need the capital to fuel faster growth, then we will look at the listing possibility,” Zafrul said.
According to TNGSB’s website, TNGSB, which was incorporated in October 1996, launched its services in March 1997, when it provided a mode of payment via a prepaid e-payment card called the Touch 'n Go card.
TNGSB said it holds the intellectual property rights to the Touch 'n Go system, which is locally developed according to Mifare standard, the industry standard for contactless smart cards.
"This enables the company to improve the system independently with required modifications, enhancements and upgrades. Touch 'n Go is now the one and only electronic toll collection operator for all highways in Peninsular Malaysia. It is also being accepted as the common ticketing system for major public transports in the Klang Valley. In addition, Touch 'n Go has diversified into parking, theme parks and selected retail outlets,” TNGSB said.
At Bursa Malaysia today, CIMB’s share price closed down two sen or 0.56% at RM3.52 for a market capitalisation of RM34.92 billion. The stock saw some nine million shares traded.