Bangkok--Apr 26--Kim Eng Securities (Thailand)
Phatra Securities Public Company Limited (“PHATRA” or “the Company”) is planning to list on the Stock Exchange of Thailand (“SET”) in order to raise fund to expand its client base and to improve its network and services.
Mr. Suvit Mapaisansin, Chief Executive Officer of Phatra Securities Public Company Limited, said, “The Company is ready to become a listed company on the SET. The Company has appointed Kim Eng Securities (Thailand) Public Company Limited as a financial advisor and Kim Eng, along with National Securities Public Company Limited, will be the lead underwriters for local retail investors. CLSA Group is the lead underwriter for local and foreign institutional investors. We have submitted application to offer shares, together with filing and draft prospectus to the Office of the Securities and Exchange Commission (“SEC”). The SEC is now in the process of reviewing the filing before approving our application."
PHATRA previously was the securities unit of Phatra Thanakit Finance and Securities Public Company Limited. When the government declared a policy to split finance and securities businesses in 1997, PHATRA was established as a separate entity under the name of “Phatra Securities Company Limited”. In 1998, Phatra Thanakit Finance Public Company Limited, which owned a 99.9% stake in the Company, sold 49% of PHATRA's shares to KASIKORNBANK and another 51% to Merrill Lynch, one of the world’s leading financial institutions.
Late 2003, KASIKORNBANK and Merrill Lynch sold their share holding in the Company to a group of PHATRA's management and employees. Currently, PHATRA is licensed by the Ministry of Finance to carry out five types of securities businesses: brokerage, securities dealing, underwriting, investment advisory and securities lending and borrowing businesses.
PHATRA’s total revenue for 2003 and 2004 were Baht 1,633.9 million and Baht 1,668.0 million respectively. The Company earned brokerage fees of Baht 779.8 million and Baht 1,013.7 million in 2003 and 2004. These were equal to 47.7% and 60.8% of its total revenue for the two years. "In terms of its investment banking business, the Company earned Baht 814.3 million and Baht 618.1 million in 2003 and 2004, which was equal to 49.9% and 37.0% of its total revenue for those two years. In terms of net profit, the Company earned Baht 649.6 million in 2003 and Baht 545.2 million in 2004.
PHATRA's brokerage business was ranked the sixth in terms of market share in 2004, accounting for 3.99% of the SET’s total trading volume.
Mr. Veravat Chutichetpong, Executive Director of Phatra Securities Public Company Limited, said, “PHATRA is one of the leading companies in the investment banking business. In 2004, PHATRA was entrusted by large Thai organisations both in the public and private sectors and help them raise fund of more than Baht 55,000 million. In recent years, PHATRA has led-managed the share offering large corporates both in public and private sector including PTT, KASIKORNBANK, KRUNGTHAIBANK, Thai Airways International, Thai Oil, Airports of Thailand, the C.P. Group of Companies, the Shinawatra Group of Companies and Glow Energy. In addition, the Company provided financial advisory services such as merger and acquisition to many leading corporates, strategic investors seeking and debt restructuring. For example, the Company provided advisory service to Thai Military Bank in share acquisition and tender offer of DBS Thai Dhanu Bank and IFCT’s shares in 2004.
PHATRA maintains its close relationship with Merrill Lynch under the Business Service Agreeement and Research Co-operation Agreement. Both agreements promote close cooperation between Merrill Lynch and PHATRA in brokerage, investment banking and research investors and help the Company to gain trust from international investors to use our services which give the Company the ability to access to international distribution networks.
Mr. Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) Public Company Limited said that “PHATRA became a public company limited this February. The Company increased its registered capital from Baht 800 million to Baht 1,100 million with of Baht 5 par value. PHATRA is now in the process of getting approved from the SEC."
Mr. Montree said he expects a very good response from investors on PHATRA's public offering given "the Company's strong potential, superior growth, experienced management team, wide recognition and an international standard of business practices."
Ms. Suvabha Charoenying, Managing Director of National Securities Public Company Limited as Co-Lead Underwriter mentioned that NATSEC is proud to be a part of this transaction. “We are confident that PHATRA’s shares will be a quality stock with a strong grow positively in the long run. This is due to its highly-capable human resources, international standard of the brokerage and investment banking services and clear business expansion direction, e.g. focusing on expanding High Net Worth Individuals client base.”
For more information please contact:
Corporate Communication Department
Kim Eng Securities (Thailand) Public Company Limited
Tel: 02-658-6300 ext. 5180, 7401-2 End.