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TDCX is 2nd S’pore firm to list in US: IPO targets US$348.5M, raising its valuation to S$3.5B

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TDCX Inc recently announced its listing on the New York Stock Exchange (NYSE), making it the second Singapore firm to list in the United States following Sea Limited’s US$884 million initial public offering (IPO) in 2017.

The pricing of TDCX’s IPO is at 19,358,957 American Depositary Shares (ADS), and each ADS represents one Class A ordinary share, at a price to the public of US$18 per ADS.

The shares began trading on the NYSE last Friday (October 1) under the symbol “TDCX”. The offering is expected to close on October 5, subject to the satisfaction of customary closing conditions.

The IPO will raise US$348.5 million in gross proceeds, taking the company’s market value to US$2.57 billion (or S$3.5 billion). The order book was upsized to 19.3 million ADS from the initial 18.8 million.

TDCX has granted its underwriters the option to purchase an additional 2.9 million shares. If the over-allotment is fully exercised, the gross proceeds from the offering will top US$401 million.

Why TDCX chose to list in the US

Laurent Junique, founder and CEO of TDCX
Laurent Junique, founder and CEO of TDCX / Image Credit: TDCX

TDCX is a 13,000-strong company specialising in high-growth digital customer experience solutions for technology and blue-chip companies.

It offers omnichannel CX solutions, sales and digital marketing services and content monitoring and moderation services, and has track record of success with clients in various verticals, from education, to fintech, to e-commerce.

According to the company, TDCX has seen a compounded annual growth rate of 55 per cent from the year ended 31 December 2018 to the year ended 31 December 2020.

Emboldened by the company’s continued growth and to accelerate the growth, an IPO on the NYSE was the best decision for TDCX, said Laurent Junique, founder and CEO of TDCX.

“Being on the NYSE allows us access to a global investor base that understands our business. The decision to list in the US is also in line with TDCX’s strategy to become a global company. As we scale greater heights, we will continue to explore the various funding options available,” he added.

In these pandemic-stricken times when most companies go belly-up without warning, TDCX’s decision for an IPO signals its tenacity to weather through the toughest of times.

Over the last two years, TDCX has opened new offices in six markets and continued to grow its team.

It currently has an international footprint with offices in Singapore, the Philippines, Malaysia, Thailand, China, Japan, Spain, India, Colombia and Romania, and services its clients’ customers globally in more than 20 languages.

“Becoming a global public company is the logical next step in our growth and was part of our longer-term strategic plan,” said Laurent.

“Our IPO provides us with additional resources to continue our strong performance, to build on our network expansion and to invest in people and technology. This will keep us at the forefront of innovative and transformative customer experience solutions.”

Covid-19 propels demand for omni-channel customer service

tdcx team
Image Credit: TDCX

According to TDCX, Covid-19 has drastically changed consumer habits, with more people staying at home and the rapid shift towards the use of digital technology.

From the streaming of entertainment programmes online to targeting customers through digital advertising, there was a huge increase in demand for such services. This in turn drove the need for efficient, omni-channel customer service.

As consumers live more and more of their lives online, the expectation for things to be done simply, conveniently and on-demand will only increase. As such, more companies are realising the importance of efficient, omni-channel customer service.

– Laurent Junique, founder and CEO of TDCX

Although TDCX was “not spared from the slowdown in travel” as their clients in tourism and hospitality were impacted by the pandemic, Laurent remains optimistic that the customer experience industry is poised for growth.

“As a partner to many new economy firms, we saw a corresponding increase in the need for our services from our clients in these sectors,” he explained.

According to Frost and Sullivan, given the anticipated increase in demand, the global outsourced customer experience services market is expected to be worth US$100 billion by 2025. In Southeast Asia, total demand is expected to reach US$14 billion by 2025.

“Our successful listing reflects the world-class company that we have built and our position as the go-to partner for transformative digital customer experience services”, said Laurent.

As we look ahead, we are focused on executing our growth strategy and further investing in our people, technology and network. With our strong understanding of consumer needs, particularly in Asia, strategic presence in key markets and diverse talent pool, we will be able to continue anticipating and supporting our clients as they look for a partner that is at the forefront of delivering transformative customer experiences.”


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Featured Image Credit: TDCX

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