The Philippine Stock Exchange (PSE) has approved the P1.38 billion initial public offering (IPO) stock brokerage CTS Global Equity Group, Inc. which will list on the bourse’s Small, Medium, and Emerging Board.
In a statement, the PSE said CTS Global will conduct its offering from March 29 to April 4, 2022.
CTS Global will be offering up to 1.375 billion common shares at a price of up to P1.00 per share. The final offer price will be determined on March 21, 2022 after the company conducts its book building process.
Proceeds from the IPO will be used by CTS Global for scaling global trading operations, expanding its client accounts management segment and funding its general working capital.
“We are pleased to see a longtime trading participant of the PSE tap the equities market to further grow its operations. We are optimistic that this IPO will help CTS Global implement its business strategy,” said PSE President and CEO Ramon S. Monzon.
CTS Global is a stock brokerage company that buys and sells shares in the Philippine stock market for and on behalf of its clients.
It also buys and sells shares in the local and foreign markets such as the United States, Japan, and Hong Kong, for its proprietary account.
While CTS Global is engaged in proprietary trading, using the funds of the company and not that of its clients, it is not involved in collective investment schemes and it is not an investment company regulated under the Investment Company Act.
Collective investment scheme involves soliciting funds from the investing public for the purpose of investing, reinvesting and trading in securities or other assets.
These include, but are not limited to, mutual funds where the investing activity of the corporation is reliant on funds pooled from the public.
The investor buying shares in the mutual fund acquires an undivided interest in the pool of assets or investments held by the mutual fund company.
On the other hand, by buying shares in CTS Global, whether during public offering or anytime thereafter, an investor becomes a shareholder with the concomitant rights of a regular stockholder in an enterprise, the business of which includes that of being a broker and a dealer in securities.