Kolao of Laos plans listing

Kolao Group, an automotive dealer in Laos, is eyeing a listing on the Stock Exchange of Thailand, while well-known European car makers are set to list their depository receipts (DRs) on the Thai capital market.

The interest comes as the Securities and Exchange Commission (SEC) prepares to introduce new rules for foreign listings next quarter.

Kolao, a 50:50 joint venture between Laotian investors and a South Korean firm, is expected to file a listing to the stock regulator in the second half, said Songyos Kulvichien, a first executive vice-president at Aira Securities, adding that it would have market capitalisation of more than 10 billion baht.

Aira Securities is acting as financial adviser for Kolao’s initial public offering (IPO) and German car makers’ DR sales.

Kolao Group is a diversified company that sells cars from South Korea’s Hyundai and Kia and China’s Chery.

It also assembles kits of second-hand imported cars, controlling more than 30% of the market in Laos.

It has expanded into motorcycle manufacturing under the Kolao brand, retail business through K Plaza in Laos, biodiesel and green energy business.

Kolao also has networks in South Korea, Hong Kong, Cambodia and Vietnam.

Mr Songyos said many companies in Cambodia, Laos, Myanmar and Vietnam were keen to list on the Thai stock market to take advantage of high liquidity and a good price-to-earnings ratio.

Aira Securities is also studying the launch of DRs for well-known European car makers such as BMW.

“Aira has joined hands with South Korean, Singaporean and European securities companies to list DRs and IPOs of foreign companies on the Thai stock market,” Mr Songyos said.

“The SET is now big, while rules and regulations have been eased and created competitiveness.”

SEC assistant secretary-general Prakid Punyashthiti said Aira would be joined by leading securities firms KT Zmico Securities and Asset Pro Management in bringing foreign securities to list on the SET.

The Thai bourse is set to be the region’s securities trading hub, he said.

Stock regulators are seeking the Bank of Thailand’s permission for multiple-currency settlements.