(Additional) SG Capital taps IPO price 3.90 baht/share, expects to trade in SET 13

SG Capital Plc (SGC) is offering up to 820,000,000 newly issued ordinary shares at a par value of 1.00 baht per share at a price of 3.90 baht per share. Singer of Thailand (SINGER), only those who are entitled to allot shares in proportion to their shareholding (Preemptive Rights), with a subscription period from 8:30 am to 5:00 pm on November 21 – 25. 65

(2) allocation to persons at the discretion of the underwriters and/or institutional investors (To be allocated at the discretion of the underwriter) Subscription period between 8:30 am and 5:00 pm on November 29 – 30, 2022 and from 8: 30 am to 5:00 pm on 1 – 2 December 65

Mrs. Yodrudee Santtikul Executive Director Head of Capital Markets Division Asia Plus Securities Co., Ltd., as underwriter and joint underwriter, revealed that the offer price of ordinary shares at 3.90 baht per share is considered a reasonable price. The price-to-earnings (P/E) ratio is 16.4 times by calculating earnings per share based on the performance of the last 4 quarters (between July 1, 2021 and June 30, 2022) Considering the average P/E of similar companies and listed on the Stock Exchange of Thailand in the last 12 months as information for comparison Has an average P / E of 24.9 times and is expected to be listed on the Stock Exchange of Thailand (SET) on December 13 in the finance and securities sector. in the abbreviation of securities as “SGC” Mr. Prasert Tantayawit, Managing Director of Asia Plus Advisory Company Limited, as a joint financial advisor, said that SGC has a total income of 1,665 million baht for the first 9 months of 2022, growing 27% from the same period last year. The main share of income comes from interest income, which includes interest income from car loans to make money, 46.% and interest income from hire purchase loans for electrical equipment and machinery, the share of 51.%, and the residual interest income from employee welfare loans. and interest on gold installment loans and other loans and a net profit of 467. million baht, together with a low level of NPL to the total loan of 3.7%. Including debt suspension, reduction of installments, return of goods, which were discussed before becoming NPL, which helped the company to ensure that the NPL level is at an appropriate level.

Ms revealed Busaba Kulsiritham, managing director of SGC, that the company aims to increase its credit portfolio to reach 50,000 million baht in 2026 from the end of the third quarter of 2022. The credit portfolio was 15,102 million baht, which was supplemented by the money received From the offer initial public offering (IPO) of no more than 820 million shares, representing 25.08% of the total shares issued and sold by the company at a price of 3.90 baht per share, the total offer value is 3,198 million baht.

The company is considered to have strong fundamentals and growth potential with strategy. Having a salesperson in the car loan group is a professional. Including recruiting vendors from local people. Along with using information technology systems to increase service capabilities to reach more customers. Along with effectively managing the quality of debtors, as well as having a network of 1,859 dealers and agents in a variety of car loan groups, and reaching customers through branch networks and franchise branches More than 4,154 affiliated companies cover all regions in Thailand. This is the strength that allows SGC to win the hearts of customers. and focus on creating value for shareholders Ready to create opportunities for stable growth in the long term. The proceeds from the fundraising will be used to expand the business from providing credit services to supporting new customers. And some of the money will be used as working capital for the company’s operations. About 1,500 million baht to support business growth strategies and goals. and financial cost constraints which are expected to be significantly reduced. Including the repayment of some of the loan from the company’s main shareholder (Singer Thailand Public Company Limited (SINGER) in the amount of about 1,600 million baht, it is expected to be repaid within the third quarter of 2023, so it confident that this fundraising time will support the Company to have a strong operating performance in the future and a stronger financial position.


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