Narayan AmmachchiSingapore-based TDCX might be setting up the terrain to delist its shares from the New York Stock Exchange (NYSE) amid a rout in the company’s share price.
Earlier this month, TDCX founder and CEO Laurent Junique offered to purchase the company’s outstanding shares for US$6.60 per share, although the stock was then being traded for less than US$5.
TDXC, a provider of BPO and CX services, went public in October 2021 at an IPO price of US$18 per share. Its market value declined with the GenAI explosion, however. Investors feared that much of the services provided by the company would eventually be automated.
In October 2023, US investment bank JP Morgan lowered TDCX’s target price to US$7, highlighting “continuity risks from generative AI for customer support providers such as TDCX.”
Founded in 1995, TDCX offers multilingual customer support, sales, digital advertising and content monitoring services. Analysts argue that most of its service lines face potential automation risks, pointing to the BPO’s AI-powered recruitment system called Flash Hire.
Despite these challenges, TDCX enjoyed a strong year in 2022, doubling its client base by adding 41 new partnerships. Net profits for the company were reported at US$114 million for 2023, with revenue reaching US$653.2 million.
TDCX currently employs over 17,800 people across 30 delivery centers in Brazil, Colombia, Hong Kong, India, Indonesia, Japan, Malaysia, Mainland China, the Philippines, Romania, Singapore, South Korea, Spain, Thailand, Türkiye and Vietnam.
CEO Laurent Junique owns 86.1% of the company’s shares and holds approximately 98.4% of its aggregate voting power, meaning there is little to no obstacle for TDCX to go private.
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