The Stock Exchange of Thailand will list Star Money pcl, an electrical appliance distributor and auto title lender, on Dec 20 under the ticker symbol "SM". The company has a market capitalization at its initial public offering (PO) of THB 2.24 billion (approx. USD 64.42 million).
SET Senior Executive Vice President Manpong Senanarong said that SM will be listed and start trading on the SET in the Financials industry group, Finance & Securities sector.
SM has two main businesses comprising 1) provision of personal loans under the supervision of the Bank of Thailand in the categories of the auto title loans and secured loans and 2) distributor of electrical appliances for household and commerce in both cash and hire purchase under the brand "Star Money" which is a leading dealer with branches in seven eastern provinces including Rayong, Chanthaburi, and Chon Buri. The company also provides other related services such as non-life insurance brokerage. Furthermore, the government's investment policy in the Eastern Economic Corridor will support the company's future growth.
SM has a paid-up capital of THB 550 million consisting of 800 million existing common shares and 300 million newly issued shares, with a par value of THB 0.50 each. It offered 240 million shares to persons at the underwriters' discretion, 50 million shares to the company's directors, executives and employees, and 10 million shares to its patrons during December 8- 9 and 13, 2022, at THB 2.04 each for a total of THB 612 million in capital raised. KGI Securities (Thailand) pcl is the financial advisor and lead underwriter.
SM Managing Director Chusak Vivatwongskasem said the listing on the SET will enhance the company's potential and increase its business opportunities. The proceeds from the fundraising will be used to expand all types of its lending business, open new branches in major provinces, make a partial repayment to financial institutions and reserve as working capital to support its growth and upgrade its services in a sustainable manner.
SM's three major shareholders after the IPO are Thanatiwath Co., Ltd. (31.27 percent), the Lawansathien family (29.61 percent), and Bualuang Ventures Co., Ltd. (5.82 percent). The IPO price is equivalent to the price-to-earnings ratio (P/E ratio) of 23.72 times. The earning per share is equal to THB 0.09, which was calculated from the company's net profit over the past 12 months (from October 1, 2021, to September 30, 2022), divided by fully diluted shares. The company's dividend policy is to pay at least 40 percent of net profit from its separate financial statements after corporate income tax and legal reserves.
For more information on SM, 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.starmoney.co.th and www.set.or.th.