Mr.Yuji Fukada, CEO, AIRA & AIFUL Public Company Limited or "A&A", a personal loan business under the brand "A money" and "Money Buddy" concept, announced that A&A has filed an application for offering securities (Filing) with the Securities and Exchange Commission (SEC) on August 2, 2023 for its initial public offering (IPO) not exceeding 1,666,670,000 shares, with a par value (par) of 0.50 baht per share or equivalent to 25.00% of the company's total issued and paid-up shares after this IPO, and will be listed on the Market for Alternative Investment (mai) in the Finance sector to reinforce the company's vision and determination to be the fastest growing personal loan service provider in Thailand. It has also appointed UOB KayHian Securities (Thailand) Public Company Limited as a financial advisor.
A&A operated the personal loan under supervision service and nano finance under supervision service with the goal of becoming an organization that enhances people's quality of life by enabling access to financial service while creating sustainable returns for the organization and all stakeholders. The focus is on offering products and services that address the needs of customers with full efficiency through various service channels, from a network of 45 branches and service points all over the country and cooperating with leading business partners as well as online service channels through the website and A money mobile application. As a result, the company currently boasts more than 300,000 customers and a total loan portfolio of 8.0 billion baht.
Mr. Fukada added that in the overall, the company's performance keeps growing from a higher demand for credit in the household sector following the recovery of economic activities and from the company's emphasis on expanding the loan portfolio, both from new customers base through online services and cooperation with leading business partners. Also, the company is paying attention to existing customers by increasing credit limits for customers with good payment history. Along with managing and controlling the quality of assets through the development of a credit approval system and efficient debt collection system, as well as nurturing personnel with potential, the company was able to generate its highest total revenue in history in 2022 with a total revenue of 1.89 billion baht. This marked an increase of 14% from the previous year; the main income was interest income from loan portfolio, which accounted for 89% of the total revenue, contributing to a net profit of 193 million baht and a net profit margin reached 10.2%.
"Our main objective to raise funds this time is to gain more financial strength in order to support expansion of the loan portfolio and to increase working capital to create sustainable growth for the company. On the other hand, the Company focuses on supporting customers to be able to pay off their debts by providing advices for appropriate debt repayment to the customers. This is conformed with the mission of the company that states To do our best to meet all aspects of customers' needs with our pleasure. In terms of Risk Management, the Company has continuously developed the Credit Scoring System to improve the efficiency of the credit approval process. This will result in being able to manage quality of customers at an appropriate and controllable risk level. Raising funds through the IPO will help strengthen the company's funding sources necessary to expand our loan portfolios and grow exponentially. Moreover, it will increase the credibility and image towards our customers and partners whilst increasing competitiveness in the long term", commented Mr. Fukada.
At present, the majority shareholding structure consists of AIFUL corporation, a leading personal loan company in Japan holding 49.75% and AIRA Capital Public Company Limited, a comprehensive financial group in Thailand holding 30.00%.
In this regard, investors can consider the information in detail from the registration statement for the offering of securities and the full prospectus of A&A, which was filed with The Securities and Exchange Commission, Thailand (SEC) via www.sec.or.th
Source: AIRA & AIFUL