CIMB GK Securities (Thailand) is looking for potential takeover targets to raise its market share to 2 per cent this year, as some securities firms are expected to come up for sale |following fiercer competition in the industry.
Subhak Siwaraksa, chief executive officer of CIMB Thai Bank - another unit of Malaysian parent CIMB Group - yesterday said the impact of commission-fee liberalisation on brokerages should be clear by the middle of the year.
"We want to take over a firm, as CIMB Group is financially strong enough to do that. Though the securities industry is not terribly active, investment-banking operations should be able to generate income from advisory and underwriting services," he said.
CIMB GK targets boosting its market share in securities transactions to 2 per cent by year-end, from 0.8 per cent now. Half of the firm's clients are institutional investors.
Aside from the brokerage service, the company also earns revenue from investment banking and preparatory-trading services.
The company anticipates higher revenue from investment banking, particularly as it will be the lead underwriter for CIMB Group's dual listing. Moreover, it expects to be the financial adviser for Malaysia's AirAsia, which also plans a dual listing in Thailand.
CIMB Group operates in Thailand through three main units - CIMB Bank, CIMB Investment Bank and CIMB Islamic.
The group caters to 4.7 million retail clients in Malaysia.
Listed in Bursa Malaysia, it has a market capitalisation of nearly US$7 billion (Bt232 |billion) and more than 24,000 employees in nine countries.
