Leading car importer and distributor Millennium Group Corporation (MGC-Asia) is aiming to mobilise funds from the Thai stock market in the second quarter of this year to support its expansion and diversification, buoyed by the reduction in Covid infections.
MGC-Asia submitted a listing proposal to the Stock Exchange of Thailand (SET) to float 336 million ordinary shares, accounting for 30% of the company's shares, in the initial public offering (IPO). Finansa Securities was appointed as its financial advisor.
Chief executive Sunhavut Thamchuanviriya said MGC-Asia aims to expand products and services in order to meet the changing lifestyles of customers, including those in the marine business, as the company is ramping up business operations to achieve both domestic and regional growth.
"In recent years, MGC-Asia's businesses have greatly improved thanks to the easing of the Covid-19 situation and the company's creation of a new business ecosystem during the pandemic," he said.
Providing mobility retail services, MGC-Asia imports and distributes vehicles, ranging from yachts to high-end automobiles, including Rolls-Royces. The group also runs two other operating businesses that provide car repair and maintenance centres as well as long-term car rental services under the name "Sixt Rent a Car", which has 4,500 branches operating in 105 countries.
The after-sales unit, which also distributes spare parts and lifestyle products, has helped support the main business by continuously generating revenues and profits for the company, Mr Sunhavut said.
The Bangkok-based auto retailer plans to strengthen the company's business ecosystem through diversification into financial and insurance businesses. Through Alpha X, a joint venture project with SET-listed SCB X, the company aims to offer financial services such as hire purchase, leasing and refinancing for luxury automobiles.
"Part of the proceeds from the public fundraising will be used for investment in Alpha X and Master Motor Services [Thailand], a Thai car service company," he said, while a portion of the funding is allotted to support new ventures in an effort to create sustainable growth in the long term.
The remaining proceeds will be used for debt repayments to the financial institutions and company's working capital, said Mr Sunhavut.
"A joint partnership with a manufacturer and provider of world-class automotive services continues to help our company to create new business opportunities that offer a good and comprehensive experience for customers and distinguish our company from other companies," he said.
