(Bloomberg) — Shares of SCB X Pcl, a holding company that controls Thailand’s fourth-largest lender by assets, surged on the first day of trading after it successfully concluded a stock-swap offer for the banking unit.
SCB X shares rose to as high as 121.50 baht each on Wednesday before trading at 118 baht as of 10:20 a.m. in Bangkok. That compares with the Tuesday closing price of 71 baht of Siam Commercial Bank Pcl 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 Pcl. The brokerage has a buy recommendation on the stock with a price target of 155 baht.
The company’s business reorganization will also increase its flexibility in expanding investments in new start-ups and technology companies, according to the brokerage, Capital Nomura said on April 22.
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