Bangkok Asset Intergroup Public Company Limited (BKA) showcases its vision to reinforce its position as “a leader in the second-hand home trading and renovated properties business in Thailand.” The company plans to offer an IPO of up to 60 million shares with a par value of 0.50 baht per share, aiming to raise funds in the MAI stock market to further develop its business, focusing on innovations in AI and Virtual Reality to create a new “Prop Tech” platform for virtual home viewing online.

Mr. Pachara Thanawongkasem, CEO of Bangkok Asset Intergroup Public Company Limited (BKA) stated that the company aims to drive itself to become a leading player in the renovated second-hand home business in the country, under the vision of “being a leader in the second-hand home trading and renovated properties business in Thailand.” The goal is to provide quality services in buying and selling second-hand homes and home renovations, ensuring high standards and comprehensive coverage in Thailand, supported by excellent after-sales service and customer satisfaction.

The company will act as an intermediary to assist those who wish to sell their homes but lack expertise, time, or experience in preparing their homes for sale. At the same time, it aims to help Thai people who want to have housing in good locations but have limited budgets, creating growth opportunities in the second-hand home trading business in Thailand through three business segments:

1. Home Renovation Services for Sale (Flipping Business), which involves taking in second-hand homes for sale along with renovations to make them ready for living, featuring beautiful designs and quality renovations, with guaranteed results and after-sales service. Currently, this segment accounts for about 80% of revenue.

2. Real Estate Brokerage (Home Deposit Business), which involves taking in second-hand homes in their original condition for sale, where the company handles marketing and sales without renovating the properties.

3. Purchasing Second-Hand Homes for Renovation and Resale (Cut Home Business), where the company buys homes from owners looking to sell or from financial institutions that own non-performing assets (NPA), including homes acquired through auctions from the Department of Legal Execution, to renovate and market for resale to customers. This segment accounts for about 20% of revenue.

The company targets single-family homes priced between 5-10 million baht in the Nonthaburi and Bangkok areas, leveraging the advantage that second-hand homes offer better locations and more value compared to new homes. It employs a Flipping business model through a method of securing funds for renovations and sales without needing to invest in purchasing entire homes, thus saving significant capital while still yielding high returns, with a total working time of only 8-10 months. The second-hand home market continues to grow due to current economic drivers, with financial institutions and AMCs holding a substantial number of NPAs, which are second-hand homes located in prime areas and considered worthwhile investments. BKA is recognized as a leader in the second-hand home market with a large inventory of renovated homes for sale and offers renovation and sales services, generating income from various projects in prime locations, with a continuous customer base. The management team has over 12 years of expertise and experience in the business, alongside a website that facilitates access to second-hand home information across all locations, and a network of agents that provide convenience and speed for customers, supporting sales and creating growth opportunities for the company.

In terms of performance over the past three years, from 2021 to 2023, the company reported total revenues of 1,304.94 million baht in 2021 with a net profit of 49.77 million baht, growing by 3.81%. In 2022, revenues were 1,302.92 million baht with a net profit of 21.44 million baht, growing by 1.65%. In 2023, revenues reached 1,313.59 million baht with a net profit of 22.27 million baht, growing by 1.70%. For the first nine months of 2024, the company reported total revenues of 870.03 million baht with a net profit of 27.64 million baht, growing by 3.18%.

However, the second-hand home market still shows sustainable growth potential due to demand in urban areas, where prices are lower than new homes in the same locations, offering better value and more usable space. The prices of new project homes have risen significantly, widening the price gap compared to second-hand homes. Additionally, new housing projects are often located further away due to the scarcity of large vacant land near cities, while most second-hand homes are in prime locations at more attractive prices than new projects, making them increasingly appealing options.

The company focuses primarily on the Flipping business, as it involves low investment in renovated second-hand homes that yield high returns compared to buying homes for renovation (Cut Home). The company believes the market still has growth potential and lacks major competitors.

The funds raised from the IPO will be used as working capital to expand the company's growth by increasing the portfolio of Flipping services, as well as developing the Property Technology (Prop Tech) business by creating a platform for real estate transactions to reach a broader and growing target customer base, both buyers and sellers. The company will utilize artificial intelligence (AI) technology to enhance information search efficiency for prospective home buyers and virtual reality technology to provide virtual home tours online. Additionally, there are plans to repay loans from third parties in full.

Ms. Nisa Porn Rukaram, Managing Director of Advisory Plus Co., Ltd., as the financial advisor, revealed that Bangkok Asset Intergroup Public Company Limited (BKA) has received approval to offer newly issued shares to the public from the Securities and Exchange Commission (SEC) and is in the process of preparing to issue and offer common shares to the public for the first time (IPO) and to be listed on the MAI stock exchange in the real estate and construction sector. Currently, BKA has a registered capital of 105 million baht, divided into 210 million shares with a par value of 0.50 baht per share, with 75 million baht of paid-up capital divided into 150 million shares. The company plans to offer up to 60 million new common shares to the public at a par value of 0.50 baht per share, representing no more than 28.57% of the total issued and paid-up common shares after this IPO.