Lazada-backed TNG Digital eyes Malaysian IPO over next two to three years: sources

MALAYSIA’S largest fintech company TNG Digital is looking at a potential domestic initial public offering (IPO) over the next two to three years that could raise over US$300 million, two sources with knowledge of the matter said.

TNG Digital could potentially fetch the valuation of a unicorn – a startup with a market value of US$1 billion or more – before the potential IPO, the sources added.

The current valuation of TNG Digital was not immediately certain. The Kuala Lumpur-headquartered company raised RM750 million (S$231 million) from an equity funding round in 2022 led by investors Lazada and parent Touch ‘n Go, according to press release at that time.

Lazada is part of Chinese technology giant Alibaba Group, while Touch ‘n Go in turn is an indirect unit of Malaysia’s second-largest bank CIMB Group.

IPO proceeds are expected to be used for further business expansion in Malaysia and beyond in South-east Asia, the sources added, declining to be named as the matter was private.

Deliberations are ongoing and no decision has been made, they added.

“The company continuously explores opportunities to access capital markets for funding, and any decisions will be announced at the appropriate time,” TNG Digital said.

Established in 2017, TNG Digital owns and operates Touch ‘n Go eWallet, which commands more than 20 million verified users, according to its website.

TNG Digital also provides financial services products including investments, lending and credit, remittances and insurance, its website showed.

It facilitates payments for over two million merchants in Malaysia, cross-border payments in more than 40 countries and has a partnership with Visa, according to its website.

TNG Digital’s annual transacting users surged 70.7 per cent on-year to 15.7 million last year, according to CIMB’s 2023 annual report. REUTERS