Malaysia-base CIMB Group Holdings Bhd is expected to become the first foreign company to list on the Stock Exchange of Thailand (SET) when the new regulations on foreign listing on the Thai bourse come into effect next month.
SET president Patareeya Benjapolchai on Monday revealed the new regulations on foreign listing have been approved by Thailand’s Securities and Exchange Commission (SEC) and the Thai bourse in October this year and will be effective from next month.
However, Patareeya disclosed that the regulations will in the first phase allow only the dual listing of foreign company listed on its home exchange which is a member of the World Federation of Exchanges (WFE) and the market capitalization of the company should be either over 10 billion baht or stay listed on foreign stock market for at least three years.
CIMB Group, which owns more than 93 percent of the stake in CIMB Thai Bank Plc — formerly Bank Thai, is expected to become the fist foreign issuers on SET with 35 million shares and the company’s shares are likely to begin trading in mid-2010.
Meanwhile, CIMB Group Holdings Berhad on the same day announced it is the first foreign corporation to announce the listing plan on the Thai stock exchange as CIMB Group’s chief executive Dato Sri Nazir Razak said, “This move amplifies our commitment to Thailand. The listing will enhance our profile to investors and the general public in Thailand and make it easy for them to be able to invest in the growth of a regional bank.”
Based on its market capitalisation of US$13.7 billion (455.9 billion baht) as of November 13, the company would be among the three largest companies on SET and the largest financial services group.
The company said the dual listing is expected to complete in the first half of 2010, subject to approvals from CIMB Group shareholders and regulatory authorities in Thailand and Malaysia.
CIMB Group is Malaysia’s second largest financial services provider and one of Southeast Asia’s leading universal banking groups, with a wide rage of services which include consumer banking, investment banking, Islamic banking, asset management and insurance products and services.
CIMB Group has its headquarters in Kuala Lumpur and key regional offices are located in Singapore, Indonesia and Thailand. In addition to its stake in CIMB Thai Bank, the company is also the majority shareholder of Bank CIMB Niaga in Indonesia.