The Thai unit of GMO-Z com, the Japanese securities brokerage, is planning to float its shares on the Stock Exchange of Thailand (SET), after posting a net profit growth for three consecutive years, thank to the high trading liquidity of the Thai bourse.
GMO-Z com Securities (Thailand) (Z) has operated in Thailand for six years and now holds a leading position in the provision of accounting services for loans for the purchase of securities in the country's securities business.
The company applied to the Securities and Exchange Commission on May 25 for an initial public offering (IPO) to raise funds for its future business expansion. The application has been the under the consideration of the regulator.
Megumu Motohisa, GMO-Z com's executive chairman, said the stock market in 2022 has been volatile due to many factors including the protracted Covid-19 pandemic and the Russia-Ukraine war which affects the global economy both directly and indirectly.
Inflation has also been skyrocketing in many countries while the tourism sector has yet to recover to the pre-Covid level.
"That presents an opportunity for investors to invest in certain assets appropriate to the level of risk acceptable to them, or an opportunity for new investors to invest in the stock market," he said.
"This is because investors now have unlimited access to information on the internet, while being able to avail themselves of various processes that can be executed without having to leave home. These factors are likely to help promote the expansion of the capital market," Mr Motohisa said.
As an online brokerage operator in Thailand, the company's major shareholder is GMO Financial Holdings Inc (GMOFHD), a subsidiary of GMO Internet. Both firms are listed on the Tokyo Stock Exchange (TSE).
Prakrit Thanwalai, chief executive of GMO-Z com, said the company is determined to provide services in the securities brokerage business on the SET in which as many as 38 listed securities brokerage firms are in operation.
While many brokers have employed the strategy of offering aggressive commission rates, the company is well aware of such risks, and therefore has focused mainly on loans for securities purchase services under the Z.com brand, with know-how transfer from GMOFHD to be adapted and applied to suit securities business operations.
At present, the company's main revenue is derived from interest on loans to purchase securities, which has shown continuous growth rate.
"The company can clearly be differentiated from other securities businesses that put the emphasis on earning from commissions. We concentrate on earning revenue from interest on loans for the purchase of securities which is our main source of income," he added.
Mr Prakrit said the company aims to become the No.1 firm in loans for the purchase of securities business in Thailand.
To achieve this, it especially targets tech-savvy investors who are equipped with investment knowledge.
