Stock brokerage CTS Global Equity Group, Inc. is planning to raise up to P1.38 billion from a planned initial public offering to fund its expansion overseas.
Documents filed with the Securities and Exchange Commission show that the firm plans to offer 1.375 billion common shares equivalent to 20 percent of the company’s post IPO capital.
The shares have a par value of P0.10 each and will have an offer price of up to P1.00 per share.
Net proceeds from the offer will be used to scale the company’s global trading operations, expand the account management business, and for general corporate purposes.
The shares will be listed and traded on the SME Board of the Philippine Stock Exchange. The company engaged SB Capital Investment Corporation as the issue manager, underwriter, and bookrunner for the transaction.
CTS Global, formerly Citisecurities Inc., was established to engage in the business of equities trading and has a cumulative experience of more than a hundred years trading in the stock market.
It uses its expertise garnered from years of experience, and intellectual property assets, specifically on risk management, macroeconomics, fundamental, and technical analysis to capitalize on opportunities on a local and global scale through trading of equities listed in various stock exchanges.
“The proponents of the Company have been able to develop a robust trading system that allows its traders to consistently generate returns on proprietary capital,” CTS Global said in its prospectus.
The company’s core competency has been honed in the local bourse as well as overseas particularly in the United States, Hong Kong, and Japan stock markets.
Through decades of active participation in financial markets, the Company has developed and continues to develop its intellectual property assets to be able to improve and enhance its competitive advantage.
The tumultuous year of 2020 was a testament to what that commitment can bring. After successfully pivoting into the new normal with newly digitized training sessions, risk management monitoring, and fully automated analytics, the pandemic has paved the way for the Company to elevate its operations.
“Financial results from 2020 reflects the Company’s capability to withstand and even profit from unprecedented market conditions, making it confident in its ability to consistently perform amidst major market challenges in the future,” CTS Global said.
Currently, the Company has a pool of over 30 individual traders who actively manage a combined capital amounting to P550 million. Each trader is considered as a business unit with its own unique trading system.
The Company said it is essentially a trader development ecosystem and additional investments in technology have only strengthened its ability to efficiently produce and distribute valuable content and information to traders.
In 2019, CTS Global invested in creating its own analytics portal to support the development of traders through ongoing performance analysis. Its risk management processes have also been completely digitized to provide risk managers a real-time view of respective business unit exposures.