SECURITIES FIRM
BFIT to offer 200m shares
The fair features 950 exhibits by 600 domestic and international companies.
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Following SEC approval of listing, firm to float 25% of common stock - probably in November
BFIT Securities plans to sell 200 million new common shares through an initial public offering in November, now that the Securities and Exchange Commission has approved its intention to list on the Stock Exchange of Thailand (SET). Santhad Sanguandikul, deputy managing director of investment banking at Siam City Securities, said that as the financial adviser for the offering, his company expected BFIT would be able to sell its new shares via an IPO in November. He said the Securities and Exchange Commission had approved the IPO plan on Tuesday. However, the exact trading debut for BFIT's new shares will be set later, after taking overall market conditions and the political situation into account. Santhad believes investor confidence will be restored after the political situation becomes clearer. "I believe [SET] trading volume in the fourth quarter this year will become more active if the political situation becomes clearer. Thus, securities stocks will be attractive among investors again. The [daily] trading volume is currently Bt12 billion, which is a high level," he said. Santhad said BFIT stock would attract investors as the company's performance has been one of rapid growth, while its return on equity is still as high as 34 per cent. BFIT's return on assets is about 13 per cent. He added that BFIT would not be adversely affected if there were any liberalisation of brokerage commissions, which may lead to losses among some brokers. This is because the company has a large capital, and a market share of 4.09 per cent as of September 15. It is, therefore, expected to retain its market share even if commissions are freed up. BFIT will offer 200 million new shares to the public, representing 25 per cent of the company's common shares. The firm wants to raise funds through the IPO to finance its business expansion, as well as refinancing subordinated debts. The capital raised will also be used in operations and information-technology development amid a new competitive environment, as well as for working capital.
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