By Yantoultra Ngui

SINGAPORE, Sept 20 (Reuters) - Malaysia's largest

fintech company TNG Digital is looking at a potential domestic

initial public offering over the next two to three years that

could raise over $300 million, two sources with knowledge of the

matter said.

TNG Digital could potentially fetch the valuation of a

unicorn - a startup with a market value of $1 billion or more -

before the potential IPO, the sources added.

The current valuation of TNG Digital was not immediately

certain. The Kuala Lumpur-headquartered company raised 750

million ringgit ($179.30 million) from an equity funding round

in 2022 led by investors Lazada and parent Touch 'n Go,

according to press release at that time.

Lazada is part of Chinese technology giant Alibaba Group ( BABA )

, while Touch 'n Go in turn is an indirect unit of

Malaysia's second largest bank CIMB Group.

Other investors include AIA and Ant Financial. TNG Digital

was established via a strategic partnership between Touch 'n Go

and Ant Financial in 2017, according to its website.

IPO proceeds are expected to be used for further business

expansion in Malaysia and beyond in Southeast Asia, the sources

added, declining to be named as the matter was private.

Deliberations are ongoing and no decision has been made,

they added.

"The company continuously explores opportunities to access

capital markets for funding, and any decisions will be announced

at the appropriate time," TNG Digital said in a statement to

Reuters.

TNG Digital owns and operates Touch 'n Go eWallet, which

commands more than 20 million verified users, according to its

website.

TNG Digital also provides financial services products

including investments, lending and credit, remittances and

insurance, its website showed.

It facilitates payments for over two million merchants in

Malaysia, cross-border payments in more than 40 countries and

has partnership with Visa, according to its website.

TNG Digital's annual transacting users surged 70.7% on-year

to 15.7 million last year, according to CIMB's 2023 annual

report.

($1 = 4.1830 ringgit)