The stock of TDCX Inc, a leading customer experience company headquartered in Singapore, witnessed a staggering surge of more than 35% today after the company revealed it had received a preliminary non-binding acquisition offer. The revelation comes after the stock closed Tuesday’s trading session at $4.83, with a remarkable uptick leading to an opening value of $6.32 the following day. As of 11:45 am GMT-5 on January 3, TDCX Inc is witnessing a remarkable increase in its stock value, reaching $6.45. This surge of $1.62 or 33.54% for the day highlights the dynamic market movement surrounding the company’s shares.
The acquisition offer proposal, a significant development for the company, has been extended by none other than Laurent Junique, Founder, Executive Chairman, Director, and CEO of TDCX Inc. The offer entails a purchase price of $6.60 per share or American Depositary Share (ADS) in cash. This move by the CEO has prompted the establishment of a special committee within the Board, comprising exclusively independent and disinterested directors. Their primary task is to thoroughly evaluate the proposal, as outlined in the letter dated January 2, 2024.
In financial terms, TDCX Inc faced some challenges in November, reporting a revenue of $119.8 million, reflecting a 5.4% year-over-year decrease and falling short of the consensus estimate of $124.2 million. The adjusted earnings per share (EPS) stood at $0.16, also missing the street estimate of $0.21. Despite these recent hurdles, as of September 30, the company holds a substantial cash and cash equivalent reserve, amounting to $317.7 million.
The stock performance of TDCX Inc over various time frames further underscores the recent volatility and the market’s reaction to the acquisition offer. The 5-day performance has seen a remarkable surge of 43.99%, while the 1-month and 3-month figures stand at 33.68% and 15.04%, respectively. Year-to-date (YTD) performance indicates a positive trend, with a gain of 30.93%, although the 1-year performance displays a notable decline of -53.99%.
Investors and industry analysts are closely monitoring the unfolding situation, awaiting further updates from the special committee as they evaluate the acquisition offer of TDCX Inc. The company’s stock performance continues to be a focal point of market attention, with the potential acquisition injecting a new layer of intrigue into TDCX Inc’s future trajectory.
