Bangkok--Nov 8--Kim Eng
Conrad Hotel November 8, 2005: UOB Kay Hian Securities (Thailand) Plc. will offer its 75 million ordinary shares to the public on November 10-11 and 14, 2005, expecting the proceeds of Baht 465 million. The Company has appointed Kim Eng Securities (Thailand) Plc. to be Lead Underwriter, together with five leading underwriters namely Siam City Securities Co., Ltd., KGI Securities (Thailand) Plc., KASIKORN Securities Plc., Kiatnakin Securities Co., Ltd. and TSEC Securities Limited.
Mr. Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) Plc., as Lead Underwriter, highlighted that “UOB Kay Hian Securities (Thailand) Plc. is a securities company with strong fundamental base. Its parent company, UOB-Kay Hian Holdings Limited, which is a listed company in Singapore Stock Exchange, is also a largest broker in Singapore. Listing on the SET is a key step forward for the company in securing its foothold to broaden its customer base, especially the foreign base and expand its competitiveness. Currently, UOBKH has all four securities licenses, namely brokerage license, proprietary license, securities distribution license and investment advisor license. The Company also gets the approval from the SEC to be a financial advisor and funds selling agent.
The Company will allocate the 75 million ordinary shares as follows: 40% to the public investors, 33.33% to the patronage and 26.67% to the directors, management and employees. The offering price is Baht 6.20, with the par value of Baht 1.00, equivalent to P/E of 9.7 times of net profit from latest 12 months (July 2004-June 2005), compared to the industry average of 17 times. It should be very attractive to the investors. The Company will use the proceeds to to expand its brokerage business by expanding branches, to develop its IT system and to be as working capital.
The revenue and net income for the year 2004 are Baht 692.30 million and Baht 219.86 million, respectively. For the first 6 months of this year, the revenue is Baht 333.49 million and the net profit is Baht 107.07 million.”
Mr. Chaipat Narkamontanakum, Co-Chief Executive Officer of UOB Kay Hian Securities (Thailand) Plc., said that “The Company was incorporated since 1998 in the name of Ocean Securities Co., Ltd. UOBKH is the securities broker member number 26 in the SET. In 2000, United Investment Limited has invested in the Company. Then, the Company has changed its name to be UOB Securities (Thailand) Co., Ltd. After UOB-Kay Hian Holdings Limied becomes the major shareholders, the Company has changed its name again to be UOB Kay Hian Securities (Thailand) Co., Ltd. In the same year, UOBKH has acquired the retail brokerage business from BNP Paribas Peregrine (Thailand) Co., Ltd. to strengthen its competitiveness.
UOBKH’s parent company, UOB-Kay Hian Holdings Limited, who has a largest market share in Singapore, is a listed securities company in Singapore Stock Exchange. It has branches in Hong Kong, London, New York, Jakarta, Shianghai and Manila. Moreover, UOBKH is still a company in United Overseas Bank Group, which is the largest bank in Singapore and has two subsidiaries in Thailand, namely UOB Radanasin Bank Plc. and Bank of Asia Plc. With the strong relationship and network, UOBKH will be able to broden the customer base both domestic and international.
Currently, UOBKH has 5 branches in Bangkok and 6 branches in provinces area. It has the marketing staff of 174 persons. UOBKH targets to be a leading brokerage house by increasing the customer base, both retail and institutional investors with the relationship with the UOB Group. The Company also plans to develop the investment banking business and expand the research coverage to be around 80-90% of the market capitalization.”
UOB Kay Hian Securities (Thailand) Plc. has the registered capital of Baht 400 million with the paid-p capital of Baht 250 million. The Company will offer 75 million ordinary shares to the public on November 10-11 and 14, 2005. The shares is expected to begin trading on the SET on November 22, 2005 under the stock symbol “UOBKH”
Company Profile
UOB Kay Hian Securities (Thailand) Public Company Limited
Company Background
UOB Kay Hian Securities (Thailand) Plc. (“UOBKH” or the “Company”) was incorporated since July 2, 1998 with the paid-up capital of Baht 250 million in the name of Ocean Securities Co., Ltd. UOBKH is the securities broker member number 26 in the SET. In 2000, the parent company, Ocean Finance Co., Ltd., sold all shares to United Investment Limited, a company in UOB Group in Singapore, Then, the Company has changed its name to be UOB Securities (Thailand) Co., Ltd.
According to the merger between UOB Securities and Kay Hian Holdings in 2001, United Investment Limited sold all shares, equivalent to 99.99% of UOBKH’s paid-up capital, to UOB-Kay Hian Holdings Limied. The Company has changed its name again to be UOB Kay Hian Securities (Thailand) Co., Ltd. In the same year, UOBKH has acquired the retail brokerage business from BNP Paribas Peregrine (Thailand) Co., Ltd. to strengthen its competitiveness.
UOBKH’s parent company, UOB-Kay Hian Holdings Limited, who has a largest market share in Singapore, is a listed securities company in Singapore Stock Exchange. It has branches in Hong Kong, London, New York, Jakarta, Shianghai and Manila.
Moreover, UOBKH is still a company in United Overseas Bank Group, which is the largest bank in Singapore and has two subsidiaries in Thailand, namely UOB Radanasin Bank Plc. and Bank of Asia Plc. With the strong relationship and network, UOBKH will be able to broden the customer base both domestic and international.
Types of Business
UOBKH has all four securities licenses, namely brokerage license, proprietary license, securities distribution license and investment advisor license. UOBKH is the securities broker member number 26 in the SET. It also gets the approval from the SEC to be a financial advisor and funds selling agent. UOBKH’s main business is brokerage business. The Company has developed the investment banking business and funds selling agent, which will be another source of income in the future.
On June 30, 2005, the Company has 12 offices, head office and 11 branches. The head office is located 3 fl., 15fl. and 19 fl. Of Sindhorn Tower 1. Five branches are located in the Bangkok and vicinity area while the other six are in other provinces. The Company doesn’t have any subsidiaries and affiliates.
Uses of Proceeds
The Company plans to use the proceeds derived from this public offering in the amount of approximately Baht 35 million to expand its brokerage business by expanding branches, Baht 40 million to develop its IT system and the remaining as working capital.
Strengths
1. Professional management team with highly experienced employees.
2. Regional and international network with holding company, UOB-Kay Hian Holdings Limited, the largest broker in Singapore, and United Overseas Bank, the largest bank in Singapore.
3. Support from strong research team with regional perspectives.
4. Potential investment banking business referred by UOB Group.
5. Strong retail base and relationship with foreign institution investors.
Strategies
1. Utilize relationship with UOB-Kay Hian Holdings Limited and UOB group
UOB plans to expand brokerage customer base via UOB Radanasin Bank and Bank of Asia (Cross-selling Program). UOBKH has started the program since March 2005 by introducing the brokerage business to the banks’ customers. The banks have also referred the customers to UOBKH since July 2005. For the institutional investors, UOBKH will broaden the customer base through UOB Group, under the service agreement.
2. Expand Investment Banking Business
UOBKH plans to expand Investment Banking business. Services will cover equity instruments, fixed income instruments, hybrid instruments, securitization and property fund, etc. UOBKH will cooperate with UOB Kay Hian Private Limited to expand the customer base under the service agreement to offer the financial advisory services such as restructuring, merger and roadshow, etc.
3. Personal Development
UOBKH is aware of human resource development because in the securities business, the main factor is staff. UOBKH has the policy to well compensate its staff, which is governed by the SET rules. UOBKH always promotes and arranges training in the company.
4. Research Quality
UOBKH has given the priority to the research which has to be complete, sufficient and up-to-date. UOBKH plans to continuously develop both quality and quantity of its research.
5. Technology Development
UOBKH has strongly invested in information technology, especially trading system. UOBKH has targeted to improve its technology efficiency to serve the customers’ need.
Corporate Communication Department
Kim Eng Securities (Thailand) Plc.
Tel. 02-658-6300 Ext. 5180 , 7401 - 3 End.