SET-listed RS Plc is preparing to float the common stock of Chase Asia Plc (Chase), its lending and debt collection business, on the Thai stock market and offer these newly issued shares to the public through an initial public offering (IPO) in the fourth quarter of this year.
A total of 562 million Chase shares will be offered in the IPO to raise funds to build a competitive edge, create opportunity, and accelerate growth.
RS chief executive Surachai Chetchotisak said the company has filed papers with the Securities and Exchange Commission to list Chase on the Stock Exchange of Thailand (SET) to strengthen and support the company's future growth.
The spin-off plan is being executed via R Alliance Co, a subsidiary of RS Group, that currently holds 35% of Chase while the majority stake of 65% belongs to Pracha Chaisuwan, chief executive of Chase. A portion of the common stock in the IPO comes from shares held by R Alliance, and will be offered to the shareholders of RS Group to reserve Chase's IPO stock.
After the IPO, RS's stake in Chase will be reduced from 35% to 20.35% of the total amount of shares available. Nevertheless, the company will remain Chase Group's strategic shareholder and will maintain its shareholding in Chase to continue fostering strategic synergies.
Listing on the SET will help Chase Group to grow fast with the support of the new funds being raised, said Mr Surachai, adding that Kasikorn Securities has been named as its financial adviser for the IPO.
Mr Pracha said the funds raised from the IPO will be used to expand the company's debt collection business, invest in non-performing loans (NPLs) from other financial institutions and companies, and ensure Chase meets international standards.
These efforts aim to improve the company's reputation, gain trust from customers and partners, and increase business potential and competitiveness.
Currently, Chase Group consists of a debt collection service, NPL management business, and lending service for NPLs. Chase operates a debt collection service business and has three subsidiaries. CF Asia Asset Management Co operates NPL management business with NPL acquisition via purchases or transfers under the supervision of the Bank of Thailand.
Resolution Way Co operates a personal lending business under central bank supervision and also acquires NPLs via transfers from both financial institutions and non-financial institutions. Courts Megastore (Thailand) Co operates a lending business under the civil and commercial code.
Pongsak Phrukpaisal, managing director of Kasikorn Securities, said Chase Group has differentiated itself from other players by providing comprehensive services while continuing to expand its potential with its long-term experience.
Additionally, he said the management team has valuable experience and expertise. Mr Pongsak added that the fundraising will increase the company's growth opportunities, which will turn into a strength and competitive edge for Chase in the long run.
