Shares of SCB X Plc, a holding company that controls Thailand’s fourth-largest lender by assets, surged on the first day of trading on Wednesday after it successfully concluded a stock-swap offer for the banking unit.
SCB X shares rose to as high as 121.50 baht before trading at 117.50 baht in the morning session. That compares with the Tuesday closing price of 71 baht of Siam Commercial Bank stocks they replaced, and 115.5 baht on April 11, the cut-off date for the shares to be offered in the 1:1 swap ratio.
With 99.06% of Siam Commercial stocks swapped for SCB X, the shares of the banking unit was delisted from the Stock Exchange of Thailand at close on Tuesday.
Siam Commercial established SCB X last year to shield the main banking unit from risks associated with an expansion into financial technology and digital assets. SCB X will become the group’s new “mothership company” to propel its growth as a regional financial technology conglomerate by 2025, it said in September.
SCB X is rated as one of the top picks among Thai lenders on expectation of its continued growth in commercial and retail loans, according to Capital Nomura Securities Plc. The brokerage has a buy recommendation on the stock with a price target of 155 baht.
The company’s business reorganisation will also increase its flexibility in expanding investments in new start-ups and technology companies, according to the brokerage, Capital Nomura said on Friday.
