Singapore tech firm TDCX files for US IPO; Fragrance joins SGX delistings

SINGAPORE (THE BUSINESS TIMES) - Singapore-headquartered TDCX has filed for a United States initial public offering (IPO) as property developer Fragrance Group is poised to exit the local bourse. 

TDCX, which provides digital customer experience (CX) services, has filed for a listing on the New York Stock Exchange with an offering of American depository shares.

Online trading platform Capila.com reported that the IPO would be worth up to US$400 million (S$538.3 million).

Founded in 1995 by chief executive Laurent Junique, TDCX provides business-process services such as omnichannel CX solutions, sales and digital marketing services, and content monitoring and moderation services. It has operations in 10 markets around the world and a workforce of more than 13,000.

In its prospectus, the company said that it partners clients in fast-growing new-economy sectors and traditional blue-chip companies undergoing digital transformation. Facebook and Airbnb account for the largest share of its revenue pie - at 60 per cent in 2020.

The bulk of its revenue (65 per cent) comes from its omnichannel CX solutions.

From the year ended Dec 31, 2018, to the year ended Dec 31, 2020, TDCX's revenue grew at a compound annual growth rate (CAGR) of 54.9 per cent. Its profit for the year grew at a CAGR of 50.3 per cent, while its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew at a CAGR of 60.7 per cent. 

For 2018, revenue stood at $181.2 million, with the company recording a profit of $38.1 million and an Ebitda of $55.4 million.

In 2019, revenue was $330.3 million, with a profit of $73.5 million and an Ebitda of $108.1 million. The next year, revenue was $434.7 million; it recorded a profit of $86.1 million and an Ebitda of $142.9 million.

Its net profit margin stood at 21 per cent for 2018, 22.2 per cent for 2019 and 19.8 per cent for 2020.

The company said that it intends to use a portion of the proceeds from its offering to repay the total outstanding principal amount of US$188 million (S$253 million) under its Credit Suisse facility, which represents a significant portion of its debt that is outstanding.

The remainder will be used to expand its business into new markets and for general corporate purposes, including working capital needs and potential acquisitions.

TDCX was the top winner at the Enterprise 50 Awards in 2019, an annual award co-organised by The Business Times and KPMG.

Separately, Catalist-listed Fragrance has applied to the Singapore Exchange for a delisting following a privatisation offer. 

In early July, Fragrance Group founder and CEO Koh Wee Meng made a voluntary conditional cash offer for all the issued and paid-up ordinary shares of the group at 13.8 cents per share to take the company private.

He intends to privatise the company as he expects Fragrance not needing to access the Singapore equity capital markets to finance its operations in the foreseeable future.

Fragrance Group shares were unchanged at 13.7 cents at 11.34am on Thursday.

• With additional information from The Straits Times