BKA Debuts on the Stock Market with a 33.33% Increase on First Trading Day

Bangkok Asset Intergroup Public Company Limited, or BKA, a leader in the renovated second-hand home trading service, has made its debut as the first real estate service provider on the mai market. The stock opened at 2.40 baht, rising by 0.60 baht or 33.33% from the IPO price of 1.80 baht, reflecting investor confidence in the company. BKA is moving forward to expand its Flipping business portfolio targeting the central Bangkok area while developing its Property Technology (Prop Tech) business by launching a platform for real estate transactions, significantly boosting this year’s revenue growth.

BKA began trading on the mai stock exchange in the real estate and construction industry on its first day, opening at 2.40 baht, an increase of 0.60 baht or 33.33% from the initial public offering (IPO) price of 1.80 baht.

Mr. Pachara Thanawongkasem, CEO of Bangkok Asset Intergroup Public Company Limited, stated that today (April 22, 2023) marks the company’s first trading day on the mai stock exchange. The company expresses gratitude to investors for their confidence in the business fundamentals, which has resulted in the stock price remaining above 2.40 baht from the IPO price of 1.80 baht. This success is a significant step towards establishing the organization as a leader in the renovated second-hand home trading service sector.

The Flipping business, real estate brokerage, and the business of purchasing second-hand homes for renovation and resale have established Bangkok Asset as the top choice for second-hand homes.

Furthermore, BKA is the first publicly listed company in Thailand to operate in this business model, aligning with its vision to lead in the second-hand home trading service and the renovation of non-performing assets (NPA) in Thailand. The aim is to provide quality second-hand home trading and renovation services with high standards across Thailand, under excellent operational management, outstanding after-sales service, and satisfaction for customers, partners, and all stakeholders.

Following this fundraising, the company will expand its Flipping service portfolio, particularly focusing on second-hand homes with growth potential from financial institutions and asset management companies (AMC) that have a significant number of non-performing assets (NPA) in the system. These are second-hand homes in prime locations that offer good investment value, targeting the central Bangkok market while focusing on renovated single-family homes priced between 5-10 million baht, as this segment has financial stability and a relatively low rejection rate, indicating high demand and significant continuous growth for the company.

Additionally, the funds will enhance the company’s capabilities in developing its Property Technology (Prop Tech) business by creating a platform for real estate transactions. This will involve utilizing artificial intelligence (AI) technology to improve information search efficiency for home buyers and virtual reality technology to provide potential buyers with a realistic view of homes online, significantly creating growth opportunities for the company in the future.

The business model of BKA is not a direct real estate business but a service business focused on renovating second-hand homes for resale, known as the "Flipping" business model. This model involves securing funds for renovations and sales without needing to purchase entire homes, allowing the company to achieve high margins compared to traditional real estate development, which requires investment from land acquisition to construction.

Ms. Nisa Porn Rukaram, Managing Director of Advisory Plus Co., Ltd., as a financial advisor, expressed her happiness and congratulations to BKA for being listed and starting trading on the mai stock exchange today, achieving success as the stock price remains above the IPO level, reflecting investor confidence in the company’s fundamentals.

“BKA shares stand out due to the government’s policies, including relaxing regulations on housing loans and related loans, reducing property transfer registration fees to 0.01% from the usual 2%, and lowering mortgage registration fees due to simultaneous property transfer registration to 0.01% from the usual 1%. Additionally, consumer behavior is shifting towards purchasing horizontal homes following the earthquake, making BKA a new stock to watch closely,” she added.

Ms. Omsin Siri, CEO of Beyond Securities Public Company Limited, as the underwriter for the additional common shares, stated that today’s success reflects investor confidence in the company’s strong potential and growth opportunities, marking an important step in creating future growth for the company. With strong fundamentals and a visionary management team with clear business strategies, the company has shown continuous growth over the past three years (2022-2024), with total revenues of 1,302.92 million baht in 2022, net profit of 21.44 million baht, total revenues of 1,313.59 million baht in 2023, net profit of 22.27 million baht, and total revenues of 1,142.46 million baht in 2024, with a net profit of 36.82 million baht. Therefore, BKA is viewed as a growth stock that will create added value and strong growth for shareholders in the future.