CTS Global Equity Group Inc., one of the country’s largest global equity trading firms, plans to raise as much as P1.375 billion from an initial public offering (IPO) by February next year, targeting investors seeking a diversified position across stock markets in multiple jurisdictions.
CTS, which is led by the group of veteran stock broker Edward Lee who founded and grew COL Financial into the country’s largest online stock brokerage, plans to sell as much as 1.375 billion common shares at P1 per share.
This equity deal will bring about 20 percent of CTS’ equity to public hands, based on a registration statement filed at the Securities and Exchange Commission.
The trading firm plans to debut on the small, medium and emerging board of the Philippine Stock Exchange.
SB Capital was mandated to act as issue manager, underwriter and bookrunner for the transaction.
Net proceeds will be used to scale global trading operations, expand the client account management segment and fund general corporate purposes.
For the IPO, each application must be for a minimum of 1,000 offer shares and thereafter, in multiples of 1,000 shares.
Formerly Citisecurities Inc., CTS was established to engage in the business of equities trading in the local bourse as well as overseas, particularly in the US, Hong Kong and Japan stock markets. It mainly trades equities, with related exposure to options and exchange-traded funds. The president and CEO is Lawrence Lee, eldest son of Edward Lee.
Currently, CTS 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.
Though the trading strategies are inherently diverse, the development and application of every distinct trading technique still falls within the overarching trading system and rules of the “FTSR” Trading Framework. This framework comprises of fundamentals analysis, technical analysis, sentiment and risk management.
At end-September, CTS generated P27.11 million in net profit out of P107.74 million in revenues, rising by 207.5 percent and 32.6 percent, respectively, in the same period last year.
In 2020, it generated P46.89 million in net income out of P157.81-million revenues. INQ