MTS Gold Group, one of Thailand's leading gold trading firms, plans to list on the Stock Exchange of Thailand (SET) in the next few years with the aim of raising funds for global business expansion.
MTS Gold chief executive Nattapong Hirunyasiri said the company is poised to become the first company purely involved with gold trading to list on the SET, following on the heels of hybrid gold and securities trader Globex Holding Management Plc (GBX).
Reconfiguration of the shareholder structure will be completed before the initial public offering, he said. MTS Gold Group will remain as a majority shareholder and oversee the company's business management.
"Listing on the SET will give the company more credibility, rev up investor confidence and provide an opportunity to raise funds at a lower cost," Mr Nattapong said.
MTS Gold operates as a gold trader and securities broker on several big commodity exchanges: the Chicago Mercantile Exchange, the Shanghai Gold Exchange, the Tokyo Commodity Exchange and the Singapore Stock Exchange. The firm plans to apply to become a gold and securities broker on the London Stock Exchange next year.
Expanding overseas will give the company further growth opportunities, Mr Nattapong said.
But the company needs to increase its capital to serve business transactions in each overseas market, he said.
MTS Gold has paid-up capital of about 1 billion baht. The company needs to increase its capital to 5 billion baht at a minimum for future business expansion and to allow an efficient working system.
"Diversifying the business into the global market will increase growth opportunities in the future, especially as a broker operating on a leading commodity exchange where the volume of trade is overflowing on a daily basis," Mr Nattapong said.
The company is looking for an institutional investment partner and a foreign synergy partner to increase its capital.
MTS Gold forecasts this year's revenue and net profit to rise by 20% on the back of an increase in gold trading on the physical and futures markets.
Gold prices have risen by 20% year-to-date as investors seek to park their capital in a safe-haven asset.
In 2018, MTS Gold recorded revenue of 350 billion baht, with a net profit of 45 million baht.