Bangkok Asset Intergroup Public Company Limited (BKA), a leader in the renovated second-hand home buying and selling service, has set the IPO price at 1.80 baht per share, with the subscription period scheduled from April 8-10. Trading on the mai market will commence on April 22, 2023. According to Beyond Securities, the underwriter, the offering price is suitable given the current market conditions and fundamentals, and they are confident of a positive response from investors. CEO Phachara Thanawongkasem announced plans to use the funds raised to expand the business of renovating second-hand homes for sale and to develop a 'Prop Tech' platform utilizing Virtual Reality for an innovative online home viewing experience. He emphasized that major shareholders are committed to locking up 87% of their shares to instill confidence and trust among investors in BKA, aiming for strong growth and good returns for shareholders.

Bangkok Asset Intergroup Public Company Limited (BKA) is offering up to 60 million new shares at a par value of 0.50 baht per share, representing no more than 28.57% of the total issued and paid-up shares after this IPO. Recently, the company appointed Beyond Securities Public Company Limited as the underwriter for this capital increase, along with five other distributors, including Finansa Securities Public Company Limited, Phillip Securities (Thailand) Public Company Limited, Dao Securities (Thailand) Public Company Limited, CGS-CIMB Securities (Thailand) Company Limited, and SBI Thai Online Securities Company Limited.

 

Ms. Omsin Siri, CEO of Beyond Securities, as the underwriter for BKA's IPO, announced that the company has set the IPO price for 60 million shares at 1.80 baht per share, resulting in a Price to Earnings Ratio (P/E) of 10 times, based on the company's net profit for 2023 and the fully diluted number of shares after the IPO. This pricing offers a reasonable discount to investors, aligning with current stock market conditions and the company's strong fundamentals, which indicate potential for profit growth. The subscription period is from April 8-10, 2023, with trading on the mai stock exchange starting on April 22, 2023, under the ticker symbol 'BKA' in the real estate and construction sector.

“As the underwriter for this capital increase, we believe that BKA shares will receive a positive response from investors due to the increasing demand for second-hand homes. BKA is a leader in the renovated second-hand home buying and selling service, providing renovation services for resale ('Flipping'), real estate brokerage services, and purchasing second-hand homes for renovation ('Cutting'). With over 12 years of experience, BKA is well-positioned in the second-hand home market, and we are confident that BKA will be an attractive new stock with strong growth opportunities in the future,” she added.

Mr. Phachara Thanawongkasem, CEO of Bangkok Asset Intergroup Public Company Limited (BKA), stated that this listing on the mai stock exchange marks a significant step in expanding the business. Not only does it create added business value, but it also strengthens future growth rates. The funds raised will be used to expand the Flipping service portfolio and develop Property Technology (Prop Tech) by creating a platform for real estate transactions, allowing the company to reach a broader target audience of both buyers and sellers. The use of artificial intelligence (AI) will enhance information retrieval for home buyers, while Virtual Reality technology will provide online virtual home tours, significantly boosting growth opportunities for the company.

BKA stands out as a provider of renovation services for second-hand homes for sale ('Flipping'), offering homes for sale after renovation to ensure they are in new, livable condition, with performance guarantees and after-sales service. The brokerage service for second-hand homes ('Deposit Homes') and the business of buying second-hand homes for renovation ('Cutting Homes') comprehensively address the needs of being 'Bangkok Asset, the leader in second-hand homes,' based on advantages over new homes in the same location, better pricing, and more usable space. These factors drive BKA's stable and sustainable growth.

To demonstrate the commitment of major shareholders and the company's founders, the Thanawongkasem family and Mr. Phakphol Petchyaem, who collectively hold 87% of the paid-up capital before the IPO (62.14% after the IPO), will adhere to a Silent Period as per stock exchange regulations, prohibiting the sale of 55% of the paid-up capital after the IPO for one year. Additionally, 15 million shares, or 7.14% of the paid-up capital after the IPO, will be voluntarily locked up for three months from the start of trading on the mai stock exchange, resulting in a total of 87% of shares held by major shareholders being locked up to instill confidence in investors.

Ms. Nisaporn Rerk-arom, Managing Director of Advisory Plus Company Limited, as the financial advisor, added that BKA's potential as a leader in the renovated second-hand home market, with advantages in location and pricing compared to new projects, makes it an attractive option for home buyers. The Flipping business model involves securing funds for renovations and selling homes without needing to purchase entire properties, leading to high returns on investment. Furthermore, the second-hand home market still has significant growth potential, as evidenced by financial institutions and AMCs holding a large number of non-performing assets (NPAs), which are second-hand homes in good locations at reasonable prices. Importantly, BKA provides a wide range of renovated second-hand homes for sale, with income diversified across Flipping, Deposited Homes, and Cutting Homes, without focusing on any single project.

With over 12 years of expertise and experience in the business, the management's credibility reinforces the company's growth potential. This is reflected in the company's performance over the past three years, with total revenues of 1,302.92 million baht, 1,313.59 million baht, and 1,142.46 million baht for the years 2022-2024, respectively, and net profits of 21.44 million baht, 22.27 million baht, and 36.82 million baht, representing net profit margins of 1.65%, 1.70%, and 3.22%, respectively.