Malaysian CSF adds some spice to AIM
17th March 2010, Anthony Miller, Tech Market View
Who? CSF – the largest commercial data centre player in Malaysia.
Why? Because apparently there’s only some ten IT companies on the Malaysian stock exchange and it seems there are no data centre players listed anywhere in SE Asia.
Why not Nasdaq? Well, Malaysia is still part of the Commonwealth and shares many laws with the UK.
I have just spoken to CSF CEO, Adrian Yong, in far away Malaysia (him, not me!) and it sounds like he got a great reception on the roadshow, with the fund-raising twice over-subscribed. CSF is raising £28m against an £88m valuation, and will report £18m in revenues and £8.2m PBT for the current FY (to 31st March). To give this some context, UK-based data centre player, Telecity turned over £169m last year (see Telecity and the joys of sweating the assets) and is currently valued at nearly £850m.
However the businesses are rather different. CSF’s roots (1991) are in data centre design, build and fit-out and they only moved to co-lo services in 2002. To date, around 60% of its business still comes from ‘DBF’ activities, but over the medium term the co-lo business will become the majority.
Yong told me he has no plans to expand into UK/Europe as the SE Asian market is still very underpenetrated for data centre services. But they do have at least one UK client (a well known paint brand) using their data centre as a disaster recovery site for its Malaysian operations.
CSF Group will be admitted to AIM next Monday.