Bangkok--8 Oct--SET
The Stock Exchange of Thailand (SET) welcomes Thaire Life Assurance pcl on its main board, listing in the Insurance sector and commencing trading on October 9 under the ticker symbol "THREL,” with a market capitalization of THB 5.7 billion (approx. USD 184 million).
SET Senior Vice President Paveena Sriphothong said that THREL is the third life assurance firm listed on SET. The company is a subsidiary of Thai Reinsurance pcl (THRE), which realizes the importance of the capital market and spin off its subsidiary to boost its financial strength. THREL provides reinsurance services for all types of life assurance for domestic life assurers. Its main revenues are from net earned premium. Part of the premium will be set aside as a technical reserve and THREL will manage this by investing to create returns to cover possible liabilities.
THREL has a paid-up registered capital of THB 600 million, consisting of 590 million existing shares and 10 million newly-issued shares, with a par value of THB 1.00 each. The company offered 295 million shares, comprised of 118 million shares to existing shareholder of THRE, and 177 million shares to the general public, at THB 9.50 per share. Bualuang Securities pcl is the company’s financial advisor and underwriter.
Surachai Sirivallop, chairman of executive board of THREL, said: "We are delighted to list our shares on SET. The fundraising will strengthen our capital to meet risk-based capital standards and for business expansion.”
THREL's three major shareholders after the IPO are THRE (50.83%), NTAsian Discovery Master Fund (5.43%) and BNP Paribas Securities Services (3.11%). The IPO price was set by book building. THREL has a price to earnings ratio of 19.65 times, calculated using net profits over the past 12 months (July 1, 2012 — June 30, 2013), divided by the number of fully-diluted shares, representing earnings per share of THB 0.48. THREL's dividend policy is to pay no less than 40 percent of net profits after taxes and reserves, subject to the approval from the Office of Insurance Commission.
For more information on THREL, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th and general information at the company's website at www.thairelife.com and www.set.or.th