TQM to float 75m IPO shares to finance online platform introduction for digital insurance

Stocks and Financial Services Press Releases Monday November 12, 2018 17:53
Bangkok--12 Nov--MT Multimedia

SEC has start counting Day 1 on TQM's filing for an IPO of up to 75,000,00 shares at THB 1.0 each, to raise fund to development an online platform that will suit the current digital environment. TQM's management are working to grow the company's four businesses continuously in line with the ongoing growth of the insurance industry.

DR UNCHALIN PUNNIPA, PRESIDENT OF TQM, a leading insurance brokerage in Thailand (company slogan: "TQM – Never stops giving you the best"), commented that TQM has four business segments: (i) non-life insurance brokerage (operated by TQM Insurance Broker); (ii) life insurance brokerage (operated by TQM Life Insurance Broker Co., Ltd, or "TQM Life"); (iii) IT and software solutions (operated by Casmatt Co., Ltd); and (iv) insurance advisory (operated by TQLD Co., Ltd, an associated company of TQM). For non-life insurance brokerage, it offers more than 130 non-life insurance products, including both (compulsory and voluntary) motor insurance and non-motor insurance (fire, marine and transport, miscellaneous general insurance, etc.) products. It provides more than 20 individual and group life insurance products. Its IT and software solutions include giving advice on business processes, digital marketing research, etc. Its insurance advisory services enable customers to search and compare insurance information (using the data provided by them) conveniently and with great time efficiency. Its corporate group maintains partnerships with more than 40 insurance firms, and employs more than 2,000 salespersons who are holders of insurance brokers' licences, as well as more than 95 branch offices and service centres throughout Thailand, which guarantee a nationwide reach and access to customers.

DR NAPASSANUN PUNNIPA, TQM'S CHIEF EXCUTIVE OFFICER (CEO), noted that the company's constant growths are driven by the growth in insurance industry that gives ample room for corporate growth. She also highlighted the low insurance penetration rate of Thailand compared to neighbouring markets'. According to the 2016 insurance business review report of Swiss Reinsurance, one of the world's leading insurance company, Thailand's penetration rate was at 5.42% and the country's insurance density at USD 323.4 per capita, below the figure of such Asian counterpart as Malaysia, Singapore, Taiwan or South Korea. These facts, she said, indicate TQM's excellent opportunity to benefit from further growths in the insurance industry. The CEO also stated that TQM's corporate group, which provides insurance brokerage, bears no risk relating to capital adequacy or management of returns on insurance premiums.

MR PICHET SITHI-AMNUAI, PRESIDENT OF BUALUANG SECURITIES PCL, a joint-Financial Advisor, TQM had submitted an application and filing to the Office of Securities Exchange Commission (SEC). SEC has granted the application Day 1 countrevvealed that the Office of Securities Exchange Commission (SEC) has accepted the filing by TQM Corporation (TQM) for an initial public offering (IPO) of capital-increase ordinary shares.

TQM's registered capital currently stands at THB 300 million (par value at THB 1.0 per share), and the company's paid-up capital at THB 225 million. The company is seeking to issue up to 75,000,000 IPO shares, or up to 25.00% of the post-IPO number of issued and called up ordinary shares. Of the shares to be issued, up to 11,250,000 (or 3.75% of the post-IPO paid-in capital) will be allotted to the company's directors, executives and/or employees and/or employees of the company's subsidiaries under Employee Stock Ownership Plans (ESOP), and the remainder to the public.

MS PANTHITA ENG, ASSISTANT MANAGING DIRECTOR FOR INVESTMENT BANKING OF THANACHART SECURITIES PCL, as Jont-Financial Advisor, added that TQM will use IPO proceeds to finance the development of projects involving upgrading and introduction of information technology (IT) systems and business processes through employment of Enterprise Resource Planning (ERP) tools, to raise the paid-in capital of TQM Insurance Broker Co., Ltd ("TQM Broker", its core company) and as its working capital.

If SEC had approve the application and filing, Joint-FA will set the appropriate offering date and should be listed on the Stock Exchange of Thailand within this year.

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