BAM has prepared for IPO of its 1,535 million shares after the SEC began day one count for its filing, boasting its strength as the country’s largest AMC* with readiness to create business opportunities in any economic climate.

Bangkok Commercial Asset Management Plc. (“BAM” or “the Company”) and FIDF have prepared for IPO of BAM’s 1,535 million shares after the SEC started day one count for the filing. The Company boasts its strength as the country’s largest asset management company,* having longer than 20 years of experience with readiness to create business opportunities in any economic climate while maintaining a continuous dividend payment record.

Mr. Somporn Moonsrikaew, BAM President, revealed that after the Company had submitted an application for securities offering and registration statement for securities offering (filing) to the SEC for the initial public offering (IPO) of its shares, the SEC already started day one count for the IPO application form and the filing form on October 23, 2019.

BAM is confident in its potential and strength as the country’s largest asset management company,* having longer than 20 years of experience in this business with varied sources of funds and solid operating performance. Over the past three years, the Company could successively post a net profit of more than Baht 4,500 million a year with average yearly asset growth of 7% and the most extensive network of 26 branch offices nationwide. The key factor is that asset management business can create business opportunities in any economic environment. During the economic downturn, most financial institutions will be plagued by an increasing amount of NPLs, thereby allowing for the Company to shop for NPLs at a more lucrative price. Meanwhile, in a buoyant economic condition, the Company’s debtors will have a strong ability to pay their debts and customers will have buying power for its NPAs.

Mr. Pongsak Phrukpaisal, Managing Director of Kasikorn Securities Plc., said that BAM executives had conducted roadshows with institutional investors at home and overseas in countries such as Hong Kong, Singapore, England and the US, which received positive response and could mirror investor confidence in BAM’s business fundamentals. The Company has a business structure that can enhance opportunities in any economic climate, and has been able to make continuous dividend payment over the past three years.

Miss Suthang Khonsilpa, Managing Director of Trinity Securities Co., Ltd., said that the shares offered consist of 280 million newly issued ordinary shares, 1,255 million existing ordinary shares offered by the Financial Institutions Development Fund (FIDF), and 230 million shares for a possible over-allotment (greenshoe), making up a total of not more than 1,765 million shares or representing 54.4% of the total issued and paid-up shares of the Company after this offering (given a full subscription for its newly issued shares). BAM will use proceeds from such fund mobilization for business expansion by purchasing NPAs for future sales, repayment of loans from financial institutions and/or repayment of debentures issued by the Company and/or notes payable that become due, and also as working capital. In such issue and offering of BAM shares, Kasikorn Securities Plc. and Trinity Securities Co., Ltd. will act as financial advisors and underwriters in Thailand.

BAM currently has a registered capital of Baht 16,225 million, divided into 3,245 million ordinary shares with a par value of Baht 5 per share, and an issued and paid-up capital of Baht 13,675 million, with FIDF owning a stake of 99.99%.

*Based on total assets according to data derived from the industry situation report prepared by Ipsos Ltd.