CTS shares jump on 1st day of trading
Veteran stockbroker Edward Lee’s CTS Global Equity Group Inc. was warmly received by investors as its share price rose 11 percent on its trading debut on Wednesday.
CTS earlier raised P1.37 billion in an initial public offering (IPO), arming its pool of traders with more funds to invest in stock markets in the Philippines and overseas.
Listing under the symbol “CTS,” the company’s shares jumped as much as 19 percent over its P1 per share IPO price before paring gains by the closing bell.
CTS earlier offered 1.37 billion shares, with all of the sale proceeds going to the company for its expansion.
Based on its IPO prospectus, over 90 percent of the proceeds would be used to significantly scale up its capital of P550 million as of September last year.
The money would be invested by a pool of around 40 traders that form the core of its proprietary trading business—the company’s main source of earnings.
CTS Global also wanted to shift more of its trading revenues to overseas markets to eventually hit 75 percent by 2025 from the present 37 percent. The rest would come from Philippine equities.
The company is chaired by Lee, who is best known for founding and growing COL Financial Group Inc. into the country’s leading online stock brokerage house.
CTS Global said it would also build a client accounts management segment to offer to interested clients.
By 2030, CTS Global said it was aiming to grow proprietary trading and client management revenues to P1 billion.
