Bangkok Commercial Asset Management (BAM) has delayed its listing on the Stock Exchange of Thailand (SET) from this year to the first quarter of 2013.
The Financial Institutions Development Fund (FIDF), BAM’s parent company, wants to make sure the subsidiary is ready to go public.
The search for a financial adviser will be delayed as well.
“Earlier, we thought we could list on the Stock Exchange of Thailand in September,” said BAM president Sumate Maneewattana.
He said that BAM, wholly owned by the FIDF, has been requested to slow the process to ensure it is ready to become a public company.
“We’re fine with the new schedule. It gives us more time to accumulate assets. When we list on the SET, our assets will have reached 500 billion baht, equal to that of a mid-sized bank,” said Mr Sumate.
As of the end of last month, the company had assets under management of 272 billion baht _ 237 billion baht in non-performing loans (NPLs) and 35 billion baht in non-performing assets (NPAs).
The total does not include NPLs and NPAs that are in the process of being transferred from the Thai Asset Management Corporation and some assets from ailing banks supervised by the Central Bankruptcy Court. These will add another 190 billion baht to BAM’s assets under management.
He said the company will seek a financial adviser through the bidding process soon. BAM expects to finalise its filing in third quarter, then submit the filing to the SET and regulators by year-end.
Mr Sumate said the proceeds from the offering will be used for debt repayments, some of which are due in 2015. The company hopes to have some proceeds left for business expansion such as the acquisition of more NPLs and NPAs.
BAM has registered capital of 13 billion baht, and its par value is 25 baht per share. Its asset-to-debt ratio is 1:1.32 times.
BAM has forecast a net profit for this year of 3.2 billion baht, higher than last year’s 2.94 billion.
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