- TDCX faces delisting after its stock plunged over 60% since its 2021 IPO.
- The BPO firm’s founder, who owns 86%, proposed taking TDCX private at $6.60 per share.
- Delisting could let TDCX focus on operations rather than quarterly targets.
Singapore-based business process outsourcing (BPO) firm TDCX announced last week that it has received a proposal from its CEO and founder, Laurent Junique, to take the company private. Junique, who owns 86% of TDCX’s shares representing 98% of voting rights, offered $6.60 per share to acquire the remaining stake in the firm.
Declining stock price
The offer comes on the heels of TDCX’s plummeting stock price since its IPO on the New York Stock Exchange in October 2021 at $18 per share.
While Junique noted his bid represents a 36% premium to TDCX’s last closing price, it pales compared to the company’s debut less than two years ago.
Why delisting?
TDCX has recently faced declining revenue growth and profitability challenges, with its top line falling 5.4% year-over-year last quarter. Analysts have a one-year average price target of $8.10 per share.
If approved, the deal would take TDCX off the public market at a time when it holds over $318 million in cash reserves. While TDCX cited benefits in its IPO filing, like currency for acquisitions and employee stock incentives, its small size has likely resulted in limited trading volumes and investor attention.
Privatization could allow management to focus on operations rather than quarterly targets.
A unique situation
Still, TDCX’s situation appears unique compared to other listed Southeast Asian tech firms. With a market cap under $1 billion, no other major shareholders, and its CEO’s outsized equity stake, few peers seem poised to follow it away from the public markets.
Larger regional players like Sea, VinFast, and Grab enjoy more investor interest in their growth stories.
