The Stock Exchange of Thailand (SET) will list Next Capital plc, a motorcycle hire purchase financing provider, on November 9, under the ticker symbol "NCAP". The company has a market capitalization at its initial public offering (IPO) of THB 1.98 billion (approx. USD 63.5 million).
SET Senior Executive Vice President Manpong Senanarong said that NCAP would list and start trading on SET in the Financials industry group, Finance & Securities sector.
NCAP is a motorcycle hire purchase service provider unregulated by the Bank of Thailand, with 24 branches nationwide, mainly targeting at retail customers who want to buy new motorcycles from dealer partners. NCAP is considered to be an alternative funding source for unbanked customer group.
NCAP has a registered paid-up capital of THB 450 million, consisting of 600 million existing common shares and 300 million newly issued shares, with a par value of THB 0.50 each. The company offered the newly issued shares, of which 225 million shares to persons under the underwriters' discretion; and 75 million shares to the company's patrons, directors, executives, employees and related persons, to the general public between October 30, 2020 and November 2 - 3, 2020 via IPO at THB 2.20 per share, for a total of THB 660 million. Finnex Advisory Co., Ltd. is its financial advisor, and Thanachart Securities plc is the lead underwriter.
NCAP's Managing Director Somchai Limpattanasin said that being a SET-listed member will enhance the company's financial potential in the hire purchase business expansion. The fund raised will be used for loan repayment to financial institutions and as working capital to increase liquidity and competitiveness. This milestone will pave the way for NCAP to be one of the leaders in motorcycle hire purchase financing business, and grow strongly and sustainably, yield long-term return to shareholders while being a vital mechanism to help build stability for the country's economy.
After the IPO, NCAP's three major shareholders are 1) COM7 plc (33.93 percent), 2) SYNNEX (Thailand) plc (26.67 percent) and 3) Vista Co., Ltd. (5.00 percent). The IPO price, based on price-to-earnings ratio (P/E ratio), was equivalent to earnings per share of 9.30 times, calculated by calculated by using the company's net profit in the past 4 quarters (July 1, 2019 - June 30, 2020). The company's dividend policy is to pay no less than 40 percent of net profit after corporate income tax and legal reserves in the company's separated financial statements.
For more information, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit www.nextcapital.co.th and www.set.or.th.