• Credit Bureau Asia, the largest provider of credit bureau services within Singapore and the sole credit bureau in Cambodia and Myanmar, made its debut on the SGX Mainboard.

• Credit Bureau Asia operates 2 main segments:

  1. Financial Institution Data Business, providing subscribing members (mainly banks and financial institutions) with access to credit information on individual consumers and/or registered business entities; and

  2. Non-Financial Institution Data Business, providing customers with business information and risk management services, sales and marketing solutions, commercial insights and other services.

• The Group does not have a fixed dividend policy, however, the Board intends to recommend dividends of at least 90% of its net profit after tax attributable to shareholders for FY2021 and FY2022.

Credit Bureau Asia (CBA) is a leading player in the credit and risk information solutions (CRIS) market in Southeast Asia, providing CRIS to an extensive client base of banks, financial institutions (FIs), multinational companies, telecommunication companies, government bodies and public agencies, local enterprises and individuals across Singapore, Malaysia, Cambodia and Myanmar. In particular, operations in Myanmar recently commenced in the fourth quarter of 2020.

Credit Bureau Asia has two core business segments:

1. Financial Institution Data Business: Provide subscribing members, mainly banks and financial institutions, with access to credit information on individual consumers or registered business entities, or both, all of which are generated from up-to-date credit information contributed by subscribing members.

2. Non-Financial Institution Data business: Provide customers with a wide range of business information and risk management services, sales and marketing solutions, commercial insights and other services.

Highlights of Credit Bureau Asia's IPO

1. Extensive and high-quality data as a foundation for a wide range of products and services

   • Long operating history and position as the first-movers in Singapore, Cambodia and Myanmar have allowed Credit Bureau Asia to build and maintain an extensive information database which would be difficult for new market entrants to replicate.
   • To ensure the quality of data, Credit Bureau Asia conducts data accuracy tests regularly and conduct investigation on any inaccuracies.
   • Leveraging on extensive data, Credit Bureau Asia’s credit scores have increased predictiveness and has been endorsed by a high rate of adoption by customers.



2. Unique defensive business model with resilient revenue streams

   • Ability to benefit from increasing volume of credit and trade transactions during an economic boom whilst maintaining resilient revenue streams during periods of economic downturn, as customers are likely to conduct more risk assessments and purchase more credit reports for risk mitigation purposes.
   • Increasing governmental and industry regulation, risk management requirements and the rising importance of data in decision-making, have resulted in an increasing importance and need for credit and risk information solutions.



3. Dominant market leader and well-positioned for growth

   • Credit Bureau Asia is the largest provider of credit bureau services within Singapore and the sole credit bureau in Cambodia and Myanmar.
   • Credit Bureau Asia sees ample growth opportunities in emerging markets such as Cambodia and Myanmar, which have seen growth in the general population and urban population but generally low banked population and low credit card penetration rates.
   • Within two years of operations, the Cambodia business had generated a positive profit after tax and cash flows from operations. Credit Bureau Asia believes that the demand for credit and risk information solutions in Myanmar is likely to grow in line with its growing population of approximately 53.0 million banked population and GDP per capita.



4. Long-standing and captive portfolio of customers, and experienced management team

   • As at 30 June 2020, the FI Data Business provides products and services to close to 200 FI members across Singapore and Cambodia, which include banks, microfinance institutions, leasing companies and rural credit operators
   • The Non-FI Data Business has over 6,000 customers across Singapore and Malaysia which include established corporations such as Procter & Gamble, IBM, Canon, Hitachi, Samsung and Unilever and FI Data Business customers, such as American Express, Citibank, DBS Bank and Standard Chartered Bank.



5. Proven financial performance and strong cash flows

   • Credit Bureau Asia's revenue and profitability have grown significantly, with combined revenues growing at a 2 year CAGR of 6.7% between FY2017 and FY2019, and combined PATMI growing at a 2 year CAGR of 16.3% between FY2017 and FY2019. The Group recorded combined EBITDA margins ranging from 43.8% to 63.4% and combined PATMI margins ranging from 14.5% to 18.1%, both from FY2017 to HY2020.
   • Credit Bureau Asia considers the nature of its business to be highly-cash generative without the need to incur a significant amount of capital expenditure. The Group has a cash conversion ratio ranging from 69.7% to 83.3% from FY2017 to FY2019.

Credit Bureau Asia's Business Strategies and Future Plans

• Continuing to drive growth within its existing market –

  • Singapore: Provide corporate credit reporting for commercial bureau operator license, expand membership of credit bureau services to insurance companies, lenders, leasing companies and upcoming digital banking businesses, real-time credit data analysis, risk diligence products and service offerings in Singapore Commercial Credit Bureau platform, and develop, establish and operate the Moneylenders Credit Bureau.

  • Cambodia: Rollout products/services with the growth of Cambodia’s economy and its credit industry, introduce services such as know-your-customer checks, employment verification, fraud detection & prevention and identity verification.

  • Myanmar: Rollout product/services based on past successful strategies in Singapore and Cambodia, introduce credit reports and monitoring services to licensed FIs and widen membership to include non-bank credit providers.

• Expanding into new markets – Explore opportunities to expand to other territories in ASEAN region and have right of first refusals in respect of certain credit bureau businesses in Indonesia.

• Advancing technological capabilities – The manager will seek to use an overall risk strategy which balances the level of risk while enhancing business goals.

Key Risks (See Page 29 of the IPO Prospectus for more risk factors)

• Subject to regulatory requirements and may not be able to successfully retain, renew or obtain licences and approvals required for business and expansion plans.
• May not be able to obtain the licences and approvals under the Credit Bureau Asia of Singapore.
• Products and services rely on licensing and service agreements, joint venture agreements as well as shareholder agreements with our joint venture partners with whom we may encounter difficulties.
• Our Non-FI Data Business depends substantially on one of our key joint venture partners, Dun & Bradstreet, who is both a major customer and major supplier.

Credit Bureau Asia's Financials & Valuation

• Based on its summary combined financial statements, revenue for FY2019 was at S$40.6 million and unaudited revenue for HY2020 was S$20.5 million. Profit attributable to owners of the companies for FY2019 was S$7.0 million while HY2020 (unaudited) was S$3.7 million.
• According to the IPO prospectus, Credit Bureau Asia’s adjusted earnings per share (EPS) is at 3.05 Singapore cents for FY2019 and 1.61 Singapore cents for HY2020 (unaudited). The price-to-earnings (P/E) ratio is 30.5x for FY2019 and 28.9x for HY2020 (unaudited), based on the offer price of S$0.93.

• Credit Bureau Asia does not have a fixed dividend policy, however, the Board intends to recommend dividends of at least 90% of its net profit after tax attributable to shareholders for FY2021 and FY2022. Based on its FY2019 adjusted EPS of 3.05 Singapore cents, this would imply a dividend yield of 3.0% based on at least 90% of profit after tax attributable to shareholders for FY2019. However, investors should note that this should not be treated as an confirmation of the company’s future dividend payouts.

Additional Information from Prospectus (click here)

Credit Bureau Asia's IPO details

• Offer price at S$0.93 per Offering Share.
• Offered: 30.0 million Offering Shares.
  • 28.5 million Placement Shares.
  • 1.5 million Public Offering Shares.
• Estimated IPO market capitalisation at S$214.3 million.
• Use of gross proceeds (S$27.0 million):
  • S$7.1 million – Organic growth initiatives such as product development, software development, and investments.
  • S$11.8 million – Strategic investments, regional expansion and acquisitions.
  • S$4.7 million – General corporate and working capital purposes.
  • S$3.3 million – Payment of underwriting and placement commissions and offering expenses.

Credit Bureau Asia's Cornerstone Investors

• At the same time as but separate from the Offering, each of the Cornerstone Investors has entered into a cornerstone subscription agreement with our Company to subscribe for an aggregate of 28,000,000 new Shares (approx. 12.2% of the total number of issued shares) at the Offering Price, conditional upon the Underwriting Agreement having been entered into and not having been terminated pursuant to its terms on or prior to the Listing Date.
• Credit Bureau Asia's Cornerstone Investors are:
  • Aberdeen Standard Investments (Asia) Limited.
  • Affin Hwang Asset Management Berhad.
  • Eastspring Investments (Singapore) Limited.
  • Tokyo Shoko Research Ltd.