KTB Securities Thailand (KTBST) plans to submit an IPO filing next year to list on the Stock Exchange of Thailand following completion of the company's business restructuring, with the launch of a personal loan and debt correction clinic unit scheduled for early 2020.
The company expects to submit its filing for an IPO launch to the Securities and Exchange Commission next year after KTBST's financial statements met the regulator's criteria, said executive chairman Win Udomrachtavanich.
KTBST is 70% owned by Seoul-based KTB Securities and Investment, with the rest owned by Thai investors and a consortium.
KTBST Lend will be set up in early 2020 as an entity providing personal lending and collateral loan service, as well as personal debt correction for white-collar workers, Mr Win said.
Mr Win anticipates a different market climate next year. SOMCHAI POOMLARD
"The Thai money and capital markets have been affected by external factors, fuelling volatility throughout this year and [causing] a slowdown for Thailand's economy," he said. "In 2020, we believe there will be a rapid change in the Thai money and capital markets as investors look for products that suit their investment style."
KTBST Holding Plc was set up in November to achieve the company's target of becoming a full-service Thai financial institution.
Besides coping with digital disruption and fierce industry competition, the holding company aims to increase operational efficiency and act as an entity supporting future business expansion.
KTBST Group expects a 26.3% rise in total revenue to 1.4 billion baht in 2020, with a 243% increase in net profit to 101.6 million baht.
The main source of revenue will be generated from commission fees earned on trading services for securities and derivatives, anticipated at 1.3 billion baht.
KTBST Group reported revenue of 1.10 billion baht as of Nov 30, with a net profit of 29.6 million baht. KTBST Group comprises KTBST, KTBST REIT Management Co Ltd and We Asset Management Co Ltd.
Some 42% of total revenue comes from commission fees from trading services for securities and derivatives, while 38% derives from commission fees for fixed-income business, mutual fund sales agents, private funds and investment banking services.
Fees from foreign investment and block trade services make up 12% of total revenue, with the remaining 8% stemming from interest, dividends, interest from margin loans and other income.
In 2019, KTBST Group had 80 billion baht in assets under advisory and 10 billion baht for private wealth management and investment advisory and mutual fund sales agents. Assets under management for private fund management were valued at 2.5 billion baht.