Dhipaya seeks shareholders' approval for stock-split plan
Dhipaya Life Assurance will seek shareholder approval on April 22 for its stock-split plan before proposing it to the Insurance Commission prior to its initial public offering.
"We consider Dhipaya Life’s stock should have sufficient liquidity to serve investors," Nitid Manoonporn, executive vice president, said yesterday.
Cutting the par value per share will make it easier for retail investors to participate in the IPO.
Dhipaya Life plans to offer newly issued shares to the public in the third quarter that would be 25 per cent of existing shares.
After the IPO, its registered capital will increase to Bt2.5 billion from Bt1.74 billion currently.
The company’s board of directors last month approved the 100:1 stock split.
Bualuang Securities and KTB Advisory have been appointed as the financial advisers for the IPO.
The IPO proceeds will be used to strengthen risk-based capital, build a new head office and fund expansion.
The company will increase its weighting in stocks from 10 per cent last year to 15 per cent by focusing on dividend and upside stocks of companies related to public investment such as construction and communications firms.
Gross premium growth
Its investment portfolio will swell to Bt10 billion by year-end from Bt8 billion currently.
Nopporn Boonlapo, chief executive officer, said the company plans to grow its gross premiums by at least 15 per cent per year with a net profit margin of 10 per cent.
This year, the company projects total premiums to increase 28 per cent to Bt5.5 billion and net profit to rise to Bt550 million from Bt404 million last year.
The company will focus on general life insurance, which consists of whole life, pensions and savings, as it wants to increase their premiums to 40 per cent of total premiums from 35 per cent now.
Proportion of mortgage reducing term assurance will fall to 55 per cent from 60 per cent and group life insurance to 5 per cent from 10 per cent.
Dhipaya Life is in an expansion mode after acquiring Siam Life Insurance and renaming it Dhipaya Life in 2012 and showing a profit in 2013.
Dhipaya Insurance, the Government Savings Bank and Panichewa Group are major shareholders of Dhipaya Life.
To accelerate premium growth, the company will this year double its agency offices to 50 from 25 and add 1,500 new agents to its force of 3,000.
It will open its first branch in Chon Buri.
The company will upgrade all agents to financial planners within five years.
