Market for Alternative Investment (mai) will list Knight Club Capital Asset Management pcl, managing non-performing loans (NPLs) and non-performing assets (NPAs), on May 5 under the ticker symbol "KCC". The company has a market capitalization at its initial public offering (IPO) of THB 2.29 billion (approx. USD 66.49 million).
mai President Prapan Charoenprawatt said that KCC would list and start trading on mai in the Financials industry group.
KCC acquires and manages NPLs and recovers NPAs for sales, having received approval from the Bank of Thailand to operate the business since 2013. Nature of NPL management business is purchasing or receiving NPLs transfer from financial institutions and financial business operators to restructure debts. The aim is to jointly solve the bad debt problem together with the debtors to enable them to repay outstanding loans and help their business remain relevant. Currently, for NPLs, the company puts focus on managing corporate and housing loans. As for NPA management, the company buys collaterals of NPLs from auctions organized by the Legal Execution Department or collaterals transferred from debt repayment. During the past years, the company has focused on NPL management. At the end of 2021, the company had assets worth a total of THB 735.82 million, with corporate loans representing 46.28 percent, housing loans at 30.58 percent and NPAs at 2.96 percent.
KCC has a registered paid-up capital of THB 310 million, consisting of 460 million existing common shares and 160 million newly issued shares, with a par value of THB 0.50 each. The company offered 150.32 million newly issued shares to persons at the underwriters' discretion, 3.88 million shares to its patrons and 5.80 million shares to its directors, executives and employees on April 22, 25 and 26, 2022, at THB 3.70 each, for a total of THB 592 million. The IPO price was equivalent to the price-to-book value ratio (P/BV ratio) of 5 times, which was calculated from the company's end-2021 book value at THB 460.61 million. The fully diluted book value per share, which represented the book value divided by the newly issued and the existing paid-up common shares totaling 620 million shares, stood at THB 0.74. Advisory Plus Co., Ltd. is its financial advisor and Trinity Securities Co., Ltd. is the lead underwriter.
KCC Chief Executive Officer Tawee Kullertprasert said that the company focuses on managing NPLs with collaterals situated in prime locations, especially those in greater Bangkok. KCC's professional executives with over 20 years of experience in financial business, updated database and standard work have contributed to the continuous growth. The proceeds will be used to acquire NPLs and NPAs, repay debts to financial institutions and/or the company's debentures that are due and/or other liabilities, and as working capital.
KCC's major shareholders after the IPO are the Boonbanjerdsri group (52.07 percent) and Tawee Kullertprasert (22.32 percent). The company's dividend policy is to pay no less than 40 percent of net profit from the company's separate financial statement after corporate income tax, and all reserves as required by law and the company's regulations.
For more information on KCC, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit, www.kccamc.com, and www.set.or.th.