KTB Investment & Securities Co. is set to become the first Korean securities firm to go public on the Thai stock market.
According to industry sources on Monday, the firm’s local entity KTB Securities Thailand filed an application to Thailand’s Securities and Exchange Commission, with an aim to go public on the Stock Exchange of Thailand by the end of the year.
KTB Securities Thailand said it plans to use the capital from its initial public offering (IPO) to expand its investment banking business in equity and debt capital markets. It also expects the upcoming IPO to help it build up a secure client base of institutional investors and strengthen its local network. Following the IPO, it is seeking to transform into a full-service brokerage that offers a range of services from retail investment to investment banking.
KTB Investment & Securities entered Thailand in 2008 by acquiring Far East Securities Co., a local securities firm. After failing to make a profit for eight years with an impairment loss ratio of over 60 percent, it managed to make a turnaround in 2016 through relentless localization efforts and financial restructuring.
Its net loss that had reached 35 million Thai baht ($1.12 million) in 2015 turned into a net profit of 8 million baht the following year. It generated 40 million baht in profit in 2017 and a net profit of 30 million baht in the first quarter of this year.
KTB Securities Thailand ranks 36th out of the 38 securities firms in Thailand as of February but has established itself as a stable brokerage in the country. It stands ninth in terms of derivative transactions with a 4 percent market share and 17th in private equity funds under management with 1.7 billion baht.
By Cho Hee-young and Kim Hyo-jin
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