Next Capital’s IPO gets great response, shares rise in first day of trading
Next Capital (NCAP) shares rose by 45.45 per cent to Bt3.20 from its initial public offering (IPO) of Bt2.20 in the first day of trading on Monday.
NCAP provides loans to motorcycle buyers and does not come under the central bank’s supervision. It has 24 outlets nationwide.
The company released 300 million shares in an IPO on October 30, of which 225 million were offered to the public and 75 million to company patrons, directors, executives and employees. The company raised Bt660 million in capital.
The market capital at IPO price was Bt1.98 billion with Finnex Advisory as a financial advisor and Thanachart Securities as underwriter.
The IPO launch won NCAP three major shareholders, namely Com7 which holds 33.93 per cent, Synnex (Thailand) 26.67 per cent and Vista Investments Limited 5 per cent. The company's IPO price is determined by a price to earnings ratio (P/E ratio) of 9.30 times compared to its net profit in the past four quarters from July 1, 2019 to June 30, 2020. NCAP has a policy to pay dividends no less than 40 per cent of its net profit after tax deduction capital reserve allocation under the law.
