CTOS eyeing bigger stake in RAM, general offer in the pipeline

Focus Malaysia LogoFocus Malaysia1 mo ago

CTOS eyeing bigger stake in RAM, general offer in the pipeline

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THE strategic acquisition of RAM Holdings Bhd will fit into the overall business plan of credit rating agency CTOS Digital Bhd especially given its earnings accretive nature.

Meanwhile, Maybank IB Research expects CTOS’s shareholding in RAM to increase from 19.2% currently to between 51% and 81% following its general offer to the remaining shareholders of RAM at an indicative equity valuation of RM280 mil-RM300 mil.“We maintain a ‘buy’ rating and forecasts, but trim our target price to RM1.86 (from RM2.17 previously) based on lower regional median PEG (price/earnings-to-growth) of two times (from 2.2 times previously).At 9.20am, CTOS was unchanged at RM1.21 with 198,200 shares traded, thus valuing the company at RM2.79 bil.

Moreover, CTOS shared that they will hold off further business purchases for the next one to two years and will instead focus on assimilating recent acquisitions.

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Article Details

Author / Journalist: Cheah Chor Sooi

Category: InvestingMarkets

Topics: Markets Top

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-22, 02:40:28

News Timezone: GMT +8:00

News Source URL:

Language: English

Reading Time: 3 minutes read

Article Length: 400 words

Coverage Area: Malaysia

Availability: Desktop Web, Mobile Web

News ID: 2786

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Update Frequency: 19 posts per day

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Headquarters: Malaysia

News Last Updated: 8h ago

Coverage Areas: Malaysia

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