Stock/SG Capital Plc

Editorial team

SET welcomes non-bank lender "SGC" on December 13

The Stock Exchange of Thailand (SET) will list SG Capital pcl, a hire purchase provider for electrical appliances and auto title lender, on December 13, under the ticker symbol "SGC". The company has a market capitalization at its initial public offering (IPO) of 12.75 billion baht (approx. US$ 363.45 million).

                                           SET senior executive vice president Manpong Senanarong

SET senior executive vice president Manpong Senanarong said that SGC will be listed and start trading on SET in the financials industry group, finance & securities sector.

SGC operates non-bank lending business under the SINGER group named "SG Capital", consisting of 1) hire purchase loan for electrical appliances, household items and captive finance, 2) auto title loan (car for cash) under the brand “Rod Tum Ngern” (focusing on trucks) via sales representatives, with over 4,154 branches and franchises of companies in the group such as Singer Thailand pcl (SINGER) and Jaymart mobile, trade partners such as go! Power and Homehub, having business network of 1,859 dealers and agents across all regions in Thailand. In addition, SGC has provided loan for debt consolidation and online gold installment loans (Click2Gold). As of September 30, 2022, SGC has a portfolio of all types of loans with a total value over 15 billion baht.

SGC has a paid-up capital of 3.27 billion baht, consisting of 2.45 billion existing common shares and 820 million newly issued shares, with a par value of 1 baht each. During November 21-25, 2022, it offered 574 million newly issued shares to SINGER shareholders with pre-emptive rights; and during November 29-30 and December 1-2, 2022, it offered 246 million newly issued shares and those left over from the pre-emptive rights offering to individuals and institutional investors at the underwriters’ discretion at 3.90 baht each, for a total of 3.20 billion baht in capital raised. Asia Plus Advisory Co., Ltd. and Maybank Securities (Thailand) pcl are its financial advisors, and Asia Plus Securities Co., Ltd. and Maybank Securities (Thailand) pcl are the co-lead underwriters.

SGC chief executive officer Busaba Kunsiritham said that the listing on SET will strengthen the company’s capital base and boost the potential to access funding sources with the aim to expand the business continuously and sustainably. The fund raised will be used to support the expansion of the loan service business, new customer base, and the expansion of the credit portfolio with continuous growth rate, as well as partially repay loans taken from SINGER.

After the IPO, the company's three major shareholders are 1) Singer Thailand pcl (SINGER) (74.92 %), 2) Jay Mart pcl (JMART) (4.46 %), and 3) Rabbit Holdings pcl (RABBIT) (4.17 %).

The IPO price was based on comparative value with securities on SET that can be used as reference (Market Comparable). The IPO price was equivalent to the price-to-earnings ratio (P/E ratio) of 21.84 times, when compared to the earnings per share (fully diluted EPS) at 0.18 baht, which was calculated from the company’s net profit attributable to owners of the parent company over the past four quarters (from October 1, 2021 to September 30, 2022), divided by fully diluted shares.

The company’s dividend policy is to pay no less than 50 % of net profit from the company's separate financial statements after corporate tax and all types of legal reserves.