KUALA LUMPUR: TNG Digital Sdn Bhd, the e-wallet joint venture between CIMB Group Holdings Bhd’s Touch ‘n Go Sdn Bhd and China’s Ant Group, is looking to close its fundraising exercise by mid-2021.
Touch ‘n Go Group chief executive officer Effendy Shahul Hamid said they have gained positive traction from a combination of corporates and private equity funds.
“We certainly have had very positive conversations. We haven’t really figured out what levels we’re going to stop the fundraising at.
“We will likely close by around mid of the year. We certainly have a lot of interest,” he said in a question-and-answer session with the media after the launch of Touch ‘n Go eWallet’s GO+, a money market investment product.
Effendy said the funds will be for the company’s expansion moving forward.
“These businesses require money to operate and we have a very clear view as to where we want to bring this business,” he said.
In January, Reuters reported that TNG Digital was in advanced talks with investors to raise US$150mil, which will see CIMB and Ant Group paring down their stakes.
CIMB owns 100% of Touch ‘n Go, which in turn, owns 51% of TNG Digital.
Effendy also said that there were no plans for the group to pursue public listing as both Touch ‘n Go and TNG Digital were self sufficient and well funded.
“We have some very strong plans for the future and we are still quite comfortable where we are.
“We will continue to participate in the private markets but at the moment, we don’t have plans for public market offering,” he added.
Meanwhile, Effendy also revealed that he is currently evaluating several potential digital bank joint venture proposals, but this will be at the Touch ‘n Go group level.
But one thing that is certain is, the group will not evolve the Touch ‘n Go eWallet into a bank.
“That’s something we’ve decided because the eWallet and the payments business are very different business verticals.
“We feel that we can be extremely successful in it and we feel that we want to double down on that.
“The shareholders have decided that we continue to pursue this business in Malaysia,” he said.
Effendy agreed that there is a huge synergy between digital banks and digital payment companies but Touch ‘n Go has yet to decide if it would go into it.
“It’s premised on making sure that we’re able to find the right consortium and if we do, we’ll certainly participate in one way, shape or form,” he said.