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G Capital

G Capital rakes in Bt135 million on MAI debut, targets 20% in revenue growth

G Capital targets revenue growth of 20 per cent next year after raising Bt135 million in capital from the Market for Alternative Investment (MAI) in its first day of trading yesterday

Managing director Santi Hokittikul said the company should now be able to support new loans worth up to Bt1 billion next year. That will grow its business by at least 20 per cent compared with this year.

G Capital currently provides instalment loans for agriculture equipment through six service centres in Chiang Rai, Phitsanulok, Surin, Ubon Ratchathani, Khon Kaen and Chachoengsao provinces.

G Capital (GCAP) shares closed at Bt3.06 on the MAI yesterday, up by Bt0.36 or 13.33 per cent from the initial public offering price of Bt2.70.

"Next year we will concentrate on expanding our loan portfolio to the agriculture sectors that are having problems with labour shortages and access to capital," Santi said.

" The demand for agriculture products is stable. That is why we have to support the expansion of agriculture businesses, and this includes loans to buy agricultural machines."

He said the company did not worry about a high level of non-performing loans (NPLs) since it has a substantial reserve fund. Currently G Capital has set in NPLs at Bt65 million when compare to the total loan portfolio while setting aside Bt74 million as their reserve fund.

As of the end of the third quarter, G Capital's loan portfolio amounted to Bt776 million.

The company's debt-to-equity ratio is currently 5 times and is expected to drop to 3x after the expansion of its investment. Revenue in the first nine months of this year was Bt116.28 million with net profit of Bt31.08 million.


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