Thai Credit Retail Bank (TCRB) has submitted filings to the Securities and Exchange Commission for an initial public offering (IPO) on the Stock Exchange of Thailand by the end of this year.
According to the filing, the bank aims to float 347,029,122 shares at a par value of 5.00 baht apiece. Of the total, 64,705,890 are newly issued ordinary shares, while the rest are the existing ordinary shares owned by OCA Investment Holdings I Pte. Altogether, the IPO shares would represent no more than 28.2% of the total issued and paid-up ordinary shares after the listing.
CIMB Thai Bank has been appointed as a financial adviser for the listing.
TCRB plans to use funds from the IPO to strengthen its capital base, expand its credit portfolio, and develop information technology systems for digital transformation, IT security and infrastructure. The remainder will be used as working capital for business operations and other purposes, said the bank.
TCRB is the first and only licensed Thai bank to focus on providing nano- and micro-finance, as well as micro-loan services, to small and medium-sized enterprise clients that cannot access financial services.
The bank's major shareholder is V C Sombat Group, which consists of VNB Holding Ltd V and Thai Life Insurance (TLI), with holdings of 63.2%. After the IPO, shares of the group will be diluted to 59.8%. OCA Investment Holdings I Pte Ltd, which currently holds 24.2%, plans to divest all of its ownership after listing.
For 2020, 2021 and 2022, TCRB reported net interest revenue of 6.37 billion baht, 8.49 billion and 11.1 billion baht, respectively. Net profits were 1.37 billion baht, 1.94 billion and 2.35 billion, respectively, with net profit margins of 20.9%, 22.1% and 20.9%.
The bank's loans to customers amounted to 68.6 billion baht, 97.7 billion and 121 billion over the same period, representing a compound annual growth rate of 32.7%, mainly attributed to loan growth in all segments.
As of December last year, TCRB had total assets of 143 billion baht and liabilities of 129 billion baht. Shareholders' equity was worth 14.4 billion baht and it had a capital adequacy ratio of 15.2%, with 3.9% non-performing loans.
The bank expects to become a full-fledged commercial bank, or a "universal bank", in September 2023. This is considered a step up from its current status as a retail bank.
With 500 branches and 3,650 employees in 2022, TCRB has been in operation for more than 17 years.
