UK's MOBILIST promotes inclusive growth and capital markets in Thailand

The trading of Thai Credit shares commenced on the SET this morning following a well-supported initial public offering (IPO). The UK's Foreign Commonwealth and Development Office (FCDO), through MOBILIST, played a crucial role alongside other key investors such as the International Finance Corporation (IFC) and the Asian Development Bank (ADB).

Thai Credit listed 254,124,200 shares at THB 29 per share, resulting in a total IPO value of THB 7,370 million (just over USD 200 million).

Distinguished as the only licensed bank in Thailand with a focus on nano-finance, micro-finance, and loans to Micro, Small, and Medium Enterprises (MSMEs), Thai Credit is the first financial institution serving this segment to be listed on the Thai stock market.

Given the significant role MSMEs play in the Thai economy and their frequent challenges in accessing traditional bank financing, Thai Credit intends to utilize the IPO proceeds to expand its lending to MSMEs, including women-owned businesses and those in rural areas. It is listed in the SET’s Financials/Banking sector and trades under the symbol “CREDIT.”

Mark Gooding, British Ambassador to Thailand, affirms, “Thai Credit’s listing will enable the bank to expand its lending to businesses and individuals that are underserved by the banking sector, fostering financial inclusion, supporting economic opportunities, and job creation. The UK is proud to support this IPO and its contribution to mobilizing capital at scale toward attaining the Sustainable Development Goals (SDGs).”

Beyond its immediate impact, Thai Credit’s IPO is poised to generate broader developmental effects by showcasing how public markets can facilitate the exit of development finance institutions from their investments. MOBILIST and other investors are acquiring shares presently held by a private equity investment vehicle, with DEG, the German development finance institution (DFI), as a shareholder.

Ross Ferguson, FCDO MOBILIST Programme Lead, emphasizes, “MOBILIST’s participation in this IPO sets an important precedent for using catalytic capital to facilitate exit-mobilization for DFIs through listed vehicles. This model allows DFIs to successfully exit private equity investments, unlocking capital for new investment while providing institutional and retail investors access to assets to build portfolios that support the SDGs.”

Thai Credit’s listing establishes a replicable precedent for similar firms serving MSMEs in other regions or DFIs holding analogous assets, recognizing the significant development finance gap in MSME lending.

Jane Yuan Xu, Country Manager for Thailand and Myanmar at IFC, highlights, “Dedicated financing for MSMEs, including WMSMEs, is critical for an inclusive and sustainable economy. Accordingly, IFC’s participation as a cornerstone investor in the IPO will help foster investor confidence while empowering women, promoting SME growth, and catalyzing job creation.”

Winyou Chaiyawan, Chief Executive Officer at Thai Credit, concludes, “Thai Credit’s successful listing reinforces investor confidence despite volatile economic and investment circumstances. The listing will also support our plans to use digital technologies to enhance customer satisfaction and corporate productivity as we expand our market share in core business segments. The bank will continue to focus on asset quality and look for strategic partners to enhance our product offering and customer experience to reach customers effectively."