Malaysia’s largest fintech firm TNG Digital is looking at a potential domestic initial public offering (IPO) over the next two to three years that could raise over $300 million, Reuters reported on Friday, quoting two sources with knowledge of the matter.
TNG Digital could potentially fetch the valuation of a unicorn (with a valuation of $1 bilion or more) before the potential IPO, the sources added.
The current valuation of TNG Digital was not immediately certain. The Malaysia-headquartered company raised MYR750 million from an equity funding round in 2022 led by investors Lazada and parent Touch ‘n Go, according to press release then.
Lazada is part of Chinese e-Commerce giant Alibaba Group, while Touch ‘n Go is an indirect unit of Malaysia’s second largest bank CIMB Group, the report added.
Other investors include AIA and Ant Financial. TNG Digital was set up via a strategic partnership between Touch ‘n Go and Ant Financial in 2017, information from its website showed.
IPO proceeds are expected to be used for further business expansion in Malaysia and Southeast Asia, the sources added, according to the report.
Deliberations are ongoing and no decision has been made, they reportedly said.
“The company continuously explores opportunities to access capital markets for funding, and any decisions will be announced at the appropriate time,” TNG Digital said in a statement to Reuters.
TNG Digital owns and operates one of Malaysia’s popular e-wallets, Touch ‘n Go eWallet, which more than 20 million verified users.
TNG Digital also provides financial services products including investments, lending and credit, remittances and insurance, among others.
It facilitates payments for over two million merchants in Malaysia, cross-border payments in more than 40 countries and has partnership with Visa.