TQM Corporation, a digital insurance broker, plans an IPO on the Stock Exchange of Thailand by next year, aiming to raise capital for business expansion into neighbouring countries.
The company plans to expand to Cambodia and Laos in the first stage, said Unchalin Punnipa, president of TQM Insurance Broker, a subsidiary of TQM Corporation.
TQM Corporation will cooperate with partners on the overseas expansion plan, Mr Unchalin said.
He said TQM Corporation has been preparing the listing process for about two years and did a restructuring of its business edifice into three subsidiaries.
As a holding company, TQM Corporation owns 100% of TQM Insurance Broker, TQM Life Insurance and Cash Mate Company Ltd.
TQM Corporation has appointed Bualuang Securities and Thanachart Capital as the company's financial advisers and underwriters on the listing plan, while selecting EY as the auditing firm and Baker McKenzie as the legal consulting firm.
TQM Corporation aims to increase insurance premiums to 10.2 billion baht this year, a 13% year-on-year increase.
In the first half of 2017, TQM Corporation logged insurance premiums valued at 5.42 billion baht, with motor insurance making up 78%, life insurance 12% and non-motor insurance 10%.
The company recorded insurance premiums worth 9 billion baht last year, with total revenue of 2.29 billion baht and a net profit of 186 million baht.
The main source of revenue was TQM Insurance Broker, Mr Unchalin said.
The business strategy for the second half is aimed at reaching out to customers on a face-to-face basis via new technology and mobile apps, he said.
TQM Corporation now has 40 insurance partners, with about 1 million customers nationwide.
TQM Insurance Broker is studying a new business entry, such as health insurance, as this market segment is expected grow significantly in the long run because of Thailand's greying demography, said Napassanun Punnipa, chief executive of TQM Insurance Broker.
"We will seek interesting [health insurance] products to offer to customers," Mrs Napassanun said. "This market is expected to grow further in the coming years."
TQM Corporation has paid-up capital of 225 million baht, and the intention is to raise the figure to 300 million in order to comply with listing regulations.
Mr Unchalin and Mrs Napassanun are a married couple holding a 100% stake in the company.
Pichit Sithi-Amnuai, president of Bualuang Securities, said TQM Corporation is an insurance broker that has already adopted the digital brokerage system, considered a core strength of the company.
The insurance business in Thailand has plenty of room to grow, he said, and business expansion via new technology will help generate faster growth.
"TQM Corporation has run its business for six decades, and the company has continued developing a working system and has applied financial technology to approach its clients," Mr Pichit said.