CTS Global Equity plans P1.38 billion IPO

MANILA, Philippines — Stock trading company CTS Global Equity Group Inc. plans to raise up to P1.375 billion from an initial public offering (IPO) in the first quarter of next year as the company plans to scale its global trading operations.

In its registration statement filed with the Securities and Exchange Commission, CTS said it intends to sell 1.375 billion common shares at an offer price of P1 apiece.

The shares to be offered will represent 20 percent of the issued and outstanding common shares of the company after the IPO.

CTS plans to use the net proceeds from the offer to scale its global trading operations, expand the client account management segment, as well as for general corporate purposes.

“The main reason for the company’s IPO is to scale its global trading. For the past few years, the company has consistently generated profits from its assets under management but was not able to maximize its bottom line profit due to overhead expenses,” it said.

“As the traders scale their accounts using the existing strategy, the company’s overhead expenses will stay the same, giving a promising opportunity for its operating leverage,” CTS said.

SB Capital Investment Corp. has been tapped as the issue manager, underwriter and bookrunner.

The shares will be listed and traded on the small, medium, and emerging (SME) board of the Philippine Stock Exchange under the trading symbol “CTS.”

Based on its timetable, CTS expects to commence the offer period on Feb. 21 next year.

The offer period is expected to end on Feb. 28, with the listing date and start of trading on the PSE will be on March 9.

Formerly Citisecurities Inc., CTS was established to engage in the business of equities trading.

The company said its proponents have been able to develop a robust trading system that allows its traders to consistently generate returns on proprietary capital given a cumulative experience of more than a hundred years trading in the stock market.

CTS said it is also a direct beneficiary of the work done in increasing market awareness and education primarily spearheaded by its closely related company, COL Financial Group Inc., of which Edward Lee is also the chairman.

The company has a pool of over 30 individual traders who actively manage a combined capital amounting to P550 million.