SINGAPORE, Sept 20 (Askume) – TNG Digital, Malaysia’s largest fintech company, is considering a domestic initial public offering to raise more than $300 million in the next two to three years, two people familiar with the matter said.
Ahead of a potential IPO, TNG Digital could be valued at a unicorn valuation — a startup valued at $1 billion or more, sources said.
TNG Digital’s current valuation is uncertain. The Kuala Lumpur-based company raised 750 million ringgit ($179.3 million) in a 2022 equity funding round led by investor Lazada and parent company Touch ‘n Go, according to a press release at the time.
Lazada is part of Chinese tech giant Alibaba Group Holding Ltd (9988.HK) , while Touch ‘n Go is an indirect subsidiary of Malaysia’s second-largest bank CIMB Group Bhd (CIMB.KL) .
Other investors include AIA and Ant Financial. TNG Digital is a strategic partnership between Touch ‘n Go and Ant Financial, established in 2017, according to its website.
Proceeds from the IPO are expected to be used to fund business expansion outside Malaysia and Southeast Asia, sources said.
He said discussions are ongoing and no decision has been taken yet.
“The company is exploring opportunities to access the capital markets for financing and any decision will be announced in due course,” TNG Digital said in a statement to Askume.
TNG Digital owns and operates the Touch ‘n Go eWallet, which has over 20 million verified users, according to its website.
According to its website, TNG also offers financial services products including digital investments, loans and credit, remittances and insurance.
According to its website, the company provides payment services to more than 2 million merchants in Malaysia, facilitates cross-border payments in more than 40 countries and has a partnership with Visa.
According to CIMB’s 2023 Annual Report, TNG Digital’s annual transaction users grew 70.7% year-on-year to 15.7 million last year.
(1 USD = 4.1830 Ringgit)
