KTB Securities targets to raise $6.2m in Thai IPO

Thailand stock exchange
Stock prices are displayed on an electronic stock board at the Stock Exchange of Thailand (SET) in Bangkok, Thailand, on Friday, June 22, 2018. Photographer: Brent Lewin/Bloomberg

KTB Securities (Thailand) (KTBST) is targeting to raise around 200 billion baht ($6.2 million) in an initial public offering (IPO), according to the company’s filing to the Securities and Exchange Commission last Friday.

Win Udomrachtavanich, executive chairman of KTBST, said, the company would use the proceeds to expand its business to neighbouring countries and improve its services.

KTBST has a registered capital of 670 million baht, divided into 67 million shares with a par value of 10 baht apiece. The IPO will comprise 16.77 million shares on offer. It has appointed Asset Pro Management as financial advisor to the IPO.

KTBST’s product range covers domestic and offshore equities, structured notes, fixed income, mutual funds, algorithmic trading platform and robo-trading.

The company is looking at setting up an asset management company, We Asset Management, by May.

According to local media’s reports, Win owns 13.7 per cent stakes in KTBST and he will maintain his shareholding following the IPO.

Previously, Win acquired 25 per cent stake from South Korea-based KTB Investment Securities in 2016 and increased his shareholding to 31 per cent after an increase in paid-up capital from 500 million baht ($15.65 million) to 555 million baht ($17.38 million) in 2017. Later, he transferred his shares to 13.7 per cent by transferring some shares to his creditors.

For the first nine months of 2018, the firm generated 890.38 million baht ($27.86 million) in revenue and 50.07 million baht ($1.57 million) in net profit.

Around 50 per cent of its revenue is in the form of commission fees from securities trading agents, 34 per cent from financial consultants, mutual fund sales agents and private fund services, and the remaining from interest, dividends and interest from margin loans.

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