The Stock Exchange of Thailand (SET) will list Heng Leasing and Capital pcl, an auto & personal loan provider on October 19, under the ticker symbol "HENG". The company has a market capitalization at its initial public offering (IPO) of THB 7.43 billion (approx. USD 220.95 million).
SET Senior Executive Vice President Manpong Senanarong said that HENG would list and start trading on SET in the Financials industry group, Finance & Securities sector.
HENG offers used car hire purchase and car title loans, under the supervision of the Bank of Thailand. In addition, HENG, established by four major loan providers in Chiang Mai province, is also a brokerage firm for non-life and life insurance under the "Heng Leasing" brand. With over 20 years of experiences, the company has comprehensive range of loan products and services, and focuses on opening more branches to cover areas of high growth potential in every region nationwide (with 451 branches in 52 provinces as of June 2021) to serve all groups of clients in need of vocational financing and working capital.
HENG has a registered paid-up capital of THB 3.81 billion with a par value of THB 1.00 each. It offered 800.84 million newly issued shares to the general people during October 6 - 8, 2021, at THB 1.95 each, for a total of THB 1.56 billion. Kasikorn Securities pcl is its financial advisor and lead underwriter, while another four securities firms: Land and Houses Securities pcl, Yuanta Securities (Thailand) Co., Ltd., Bualuang Securities pcl, and Phillip Securities (Thailand) pcl are the co underwriters.
HENG Chief Executive Officer Sutharntip Phisitbuntoon said that the listing on SET will further strengthen the company's business and potential for steady and sustainable growth in the future. HENG plans to spend the raised fund on expanding the lending services and related businesses, repaying some loans to financial institutions and developing the information technology system, and as working capital. HENG is determined to become a leading lending company offering one-stop loan products to provide shareholders and stakeholders at all levels with long-term good returns. The company truly intends to offer equal, transparent and fair financial services.
HENG's three major shareholders after the IPO are 1) the Tawee Heng Group (36.70 percent), 2) Kasikornbank pcl (10.00 percent) and 3) the Pattanasin group (9.98 percent).
The IPO price, based on a book building process, was equivalent to the price-to-earnings ratio (P/E ratio) of 29.00 times. The earnings per share is equal to THB 0.07, calculated from the company's net profit of THB 256.1 million in the past 12 months (from the second quarter of 2020 to the second quarter of 2021) , divided by fully diluted shares.
The company's dividend policy is to pay no less than 40 percent of net profit from its separate financial statement after tax and legal reserves specified by laws and the company.
For more information on HENG, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th. For general information, please visit www.hengleasing.com as well as www.set.or.th.