“The offer price of US$6.60 per share implies 5.2x FY2024 EV/EBITDA, which we note is slightly below the valuation of its closest peer TaskUS which is currently trading at 6.1x or CX (customer experience) peers’ average 6.8x,” write Ong and Tan in their Jan 4 report.
CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan have kept their “hold” call on TDCX but with a higher target price of US$6.60 ($8.76) from US$6.20 previously. The analysts’ target price is the same as the price offered by the company’s founder and CEO Laurent Junique.
Junique had made a preliminary non-binding proposal to the shareholders of TDCX, a Singapore-based but NYSE-listed company where he will acquire the remaining shares he does not own and take the company private thereafter. Junique owns 86.1% of TDCX’s outstanding shares currently, representing 98.4% of the aggregate voting power.
