SET Senior Executive Vice President Manpong Senanarong said that TLI would list and start trading on SET in the Financials industry group, Insurance sector.
TLI, which operates business under the name "Thai Life Insurance", is a well-known and trusted brand for over 80 years and has been among the top 3 in the country for 12 consecutive years until today (based on total insurance premiums). TLI offers a wide variety of products and provides services with nationwide coverage via a network of over 64,000 life insurance agents (dubbed as the largest network of agents in the country), and distribution channels via financial institutions, leading partner organizations and others that can reach every group of target customers. Moreover, TLI has also received business support from Meiji Yasuda Life Insurance Company (MY), the company's strategic shareholder and one among the major life insurance firms in Japan.
TLI has a registered paid-up capital of THB 11.45 billion. The company offered 2.32 billion IPO shares comprising 850 million newly issued shares, 1.17 billion existing shares held by V. C. Property Co., Ltd., 138.49 million existing common shares owned by Her Sing (H.K.) Limited, and 161.63 million shares for overallotment option, with a par value of THB 1 each. The IPO shares were allocated to individuals at the underwriters' discretion, persons possessing relationship with the company and the company's employees during June 29 - July 6, 2022, and institutional investors both domestically and internationally during July 11-12 and July 14, 2022, at THB 16 each, for a total offering size of of THB 37.07 billion (including over-allotment) and a fresh capital raising value of THB 13.60 billion. Kiatnakin Phatra Securities pcl and Capital Nomura Securities pcl are financial advisors and lead underwriters, while Krungsri Securities pcl, CGS-CIMB Securities (Thailand) Co., Ltd. and Finansa Securities Co., Ltd are co-lead underwriters.
TLI Director & Chief Executive Officer Chai Chaiyawan said that the listing on SET will enhance the company's growth potential continuously and sustainably. The company plans to use the fund raised to invest in technology (Digital Transformation) to become a data-driven company and to enhance efficiency of the distribution channels via currently strong partners to better serve the diverse needs of customers. The fundraising is also aimed to strengthen the capital fund to secure the leadership position in life insurance business in Thailand and Southeast Asia, while demonstrating all aspects of a truly sustainable life insurance company that can generate sustainable returns for investors and is ready to take care the Thai people inclusively.
TLI's three major shareholders after the IPO are 1) V.C. Property's group (50.79 percent), 2) MY (15.00 percent), 3) Her Sing (H.K.) Limited (6.19 percent). The existing shareholders together with the lead underwriters and initial purchasers abroad have determined the IPO price based on several factors. If considering the embedded value (based on actuarial valuation in order to find the value of benefits to shareholders from the valid policy of a life insurance firm) as at December 31, 2021, equal to THB 142.28 billion, divided by the fully diluted shares of 10.60 billion, the embedded value of the business will be THB 13.42 per share, representing the price to embedded value ratio (P/EV ratio) of approximately 1.19 times, accounting for price to book value (P/BV) of around 2.13 times. Net book value will be THB 7.50 per share if based on the shareholders' equity of the company as of March 31, 2022.
As for life insurance business, the valuation of the company based on the price- to-earnings ratio (P/E ratio) does not reflect the fair value, as it does not mirror the economic value from the cash flow that the company will receive from the insurance policy providing coverage for a period of more than 1 year.
The company's dividend policy is to pay no less than 30 percent of net profit from the company's separate financial statements, after tax and all types of various reserves as required by law.
Investors and interested parties, please see details from the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit www.thailife.com as well as www.set.or.th.
Source: SET Corporate Communications