SCB share at its highest for 25 months
SCB share at its highest for 25 months
The share price jumps nearly 20% in the morning session
A branch of Sima Commercial Bank in Bang Kapi, Bangkok on August 17 this year. (Photo by Varuth Hirunyatheb)
Siam Commercial Bank saw its share price hit a 25-month high after markets opened on Thursday, following the announcement of a major restructuring plan and a new venture capital fund with Charoen Pokphand Group.
The third-largest asset lender said on Wednesday it would establish SCBX as the parent company through a 1: 1 share swap.
SCBX would replace SCB as a listed entity and a one-time dividend of 70 billion baht would be paid to SCBX to fund the business transfer, new investments and payment to shareholders.
The stock price rose 19.6%, or 21.50 baht, to 131 baht in heavy trading worth 14.6 billion baht after peaking at 137 baht in Thursday morning trading. . The main index of the Stock Exchange of Thailand closed up 0.45%.
The exchange of shares is subject to the approval of shareholders and regulatory authorities. He plans to delist SCB in February of next year.
King Maha Vajiralongkorn is the bank’s largest shareholder with a 23.4% stake.
The bank also announced a venture capital fund of up to $ 800 million in size, which will be managed with local food conglomerate, Charoen Pokphand Group, to invest in blockchain technology and digital assets.
SCBX is said to own shares in more than 16 companies, including auto loans, credit cards, AI-based loans, and food delivery.
It aims to have 200 million customers by 2025 in the region and achieve a market capitalization of 1,000 billion baht compared to 372 billion baht.