Fintech boom is underway but stock market is wary

SINGAPORE (Nov 26): On Nov 22, loss-making circuit board manufacturer CPH said it was pivoting from its competition-ridden core business to financial technology via a reverse takeover (RTO) of alternative financing provider oCap in a deal worth $61.8 million.

Under the terms of the deal, CPH will issue 5.15 billion new shares at 1.2 cents apiece. oCap is now held by an entity called Delphinium Capital, in turn owned by insurer Swiss Life Holding. It has a paid-up share capital of $21 million.

For shareholders of CPH, which has been in the red since 2014, this seems like good news at long last. The business of manufacturing electronic parts faces tough competition from Malaysia and Taiwan. CPH chairman Lee Teong Sang explains that the deal will help the company turn profitable and attract new investors. “This is one way to transform ourselves,” he adds.

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