KTBST creates Philippines tie

Memo to promote dual listings

KTB Securities Thailand (KTBST) yesterday signed a memorandum of understanding (MoU) with Philippine investment house Unicapital Group to expand bilateral capital market collaborations by offering investment banking and securities services for institutional clients.

The MoU aims to foster cooperation on three projects comprising public fundraising from institutional clients on the Stock Exchange of Thailand (SET) and the Philippine Stock Exchange (PSE); dual listing on both; and establishing infrastructure funds for interested assets or projects in the two countries.

Five deals are in the negotiation process, including the baht bond, dual listing and an initial public offering (IPO), said KTBST executive chairman Win Udomrachtavanich.

The first IPO by a Philippine company on the SET will be an infrastructure fund, with expectations that fundraising will commence this quarter, said Mr Win.

“It is not difficult for the two companies to cooperate because both have an independent organisational structure as we are not subsidiaries of commercial banks,” he said. “Such cooperation will provide investors in Thailand and the Philippines with investment opportunities and risk diversification.”

Mr Win said the Philippines’ capital market is new to Thai investors, with many interesting major industries to invest in such as the consumer, entertainment, food and beverage and utility fields.

KTBST also plans to list on the Thai bourse next year and is expected to submit an IPO filing to the Securities and Exchange Commission within this quarter.

After the IPO, shares of major shareholder KTB Group will be diluted from 69% to 59% and those of Mr Win to 13% from 31%. KTBST has paid-up capital of 555 million baht.

The company targets net profit of 60-70 million baht this year, up from 40 million last year.

Unicapital chief executive Jaime Martirez said the Philippines’ economic outlook remains positive thanks to robust domestic consumption, accelerated government infrastructure spending and stable foreign direct investment (FDI) inflows tempered by the upcoming 2019 general election.

FDI into the Philippines hit a record level of US$10.05 billion in 2017, said Unicapital.

“KTBST and Unicapital’s partnership should bring companies to list in Manila and Bangkok, or choose cross-listings in both markets in line with the Asean thrust to foster greater capital mobility between member countries,” said Mr Martirez.

Kittiratt Na-Ranong, chairman of the board of KTBST, said Thailand’s general election roadmap will improve business and spending sentiment in the country.

“Thailand is still a top destination for foreigners. We expect tourism to grow 9-10% year-on-year, led by tourists from China, India and Laos,” he said.

Five deals are in the negotiation process, including the baht bond, dual listing and an IPO. WIN UDOMRACHTAVANICH Executive chairman, KTBST