CIMB Focuses on TNG Digital’s Organic Growth
CIMB Group Holdings Bhd currently has no immediate plans to pursue an initial public offering (IPO) for its subsidiary, TNG Digital Sdn Bhd. According to Gurdip Singh Sidhu, the chief executive officer of CIMB Bank Bhd, the company’s recent performance is the primary reason for this strategic decision. He stated that the fintech firm is performing exceptionally well, has recently become profitable, and has even achieved the coveted “unicorn” status, a valuation of over US$1 billion. The executive clarified that while the option of an IPO will always be on the table for future consideration, the company is not in a rush to go public at this time. Instead, the focus will remain on maximizing its strong business growth and consolidating its position in the market before pursuing a listing. This approach suggests a belief in the company’s internal strength and its ability to continue scaling without the immediate need for a public capital infusion.
A Shift from Previous IPO Ambitions
The decision to postpone an immediate IPO represents a notable shift from TNG Digital’s previous stated intentions. The fintech firm had earlier announced its plan to pursue an IPO within the next two to three years, with an ambitious goal of raising over US$300 million to fuel its expansion. This strategic pivot from a public listing to a focus on organic growth is a clear indicator that TNG Digital’s internal performance is strong enough not to require external capital from the public markets at this time. The company’s ownership structure provides a backdrop for this decision, as the fintech firm is 45.01% owned by Touch ‘n Go Sdn Bhd, which is a unit of CIMB Group. This ownership detail clarifies the relationship between the entities and provides context for how the decision to delay the public offering was reached, signaling confidence from the parent company in its subsidiary’s ability to thrive independently.
Government Support and a Broader National Goal
TNG Digital’s recent success and its attainment of unicorn status also align with a broader national goal set by the Malaysian government. The government has expressed its commitment to fostering such growth within the nation’s technology sector. Finance Minister II Datuk Seri Amir Hamzah Azizan recently stated that the government aims to identify five unicorns in Malaysia by 2030. TNG Digital’s achievement contributes directly to this national goal, positioning the company as a flagship example of a successful Malaysian technology venture. The success of such a high-profile company helps to validate Malaysia’s reputation as a growing technology hub and its efforts to create a vibrant digital economy that can compete on the global stage. This government support and national focus on fostering high-growth companies further validate TNG Digital’s current strategy of focusing on internal growth and market consolidation rather than rushing to a public offering.
