Asset Pro Management plans financial advisory in Singapore
Thai financial advisory company Asset Pro Management (APM), under ambitious growth targets by 2020, is aiming to set up a branch in Singapore this year to support dual listings on Asean stock markets.
Two years ago, APM received a financial advisory licence in Laos, under which it set up APM (Lao) Securities.
Somphob Sakpunpanom, chairman of APM, said APM International in Singapore would help upgrade the international image of the parent firm, as Singapore is the major fund-raising market in Asean and having a presence there would help APM get a clearer picture of business flows in the region.
Singaporean regulations require capital equivalent to Bt10 million for setting up a financial advisory company, but APM International plans to inject capital above that requirement.
In Laos, APM had exposure since 2010 before getting a licence in 2014.
APM (Lao) Securities last year helped two Laotian companies list on the Lao Securities Exchange, and two or three more will be listed this year.
The company will use its experience in Laos as the model for Cambodia and Vietnam, where it hopes to set up financial advisories in the near future.
Somphob said the CLMV countries (Cambodia, Laos, Myanmar and Vietnam) would provide a good database for APM International to advise companies on listing on Asean bourses. “Furthermore, having two securities licences in Laos and Singapore will provide opportunities for APM to encourage companies to make dual listings.”
Capital markets in Singapore and CLMV will be more powerful in five years, so APM needs to have footprints in those markets to ride the opportunities, because by 2020, APM should be strong enough to list on stock markets in Asean, he said.
“Large companies are expected to make dual listings in Thailand, Laos and Singapore, and APM is at an advantageous stage because we have three licences to offer services to those companies.”
Also, the company will set up a company in Laos this year under the name of APM Leasing Co after seeing investment flows helping create employment and lift the purchasing power of Laotian consumers.
Leasing automobiles, home appliances and office equipment to white-collar workers in Laos will be the target of APM Leasing. The company is expected to be in operation by next quarter.
Another step for APM in Laos is the insurance business. The company is conducting a feasibility study before seeking an insurance licence from the Bank of the Lao PDR.
“When interest rates in the money and capital markets in Laos begin declining, the bond market will become more interesting for the insurance business in Laos, because it needs to invest in markets that give a certain return. The insurance business will help the bond market in Laos get stronger as well,” he said.
Under the 2020 plan, APM will have revenue of no less than Bt1 billion that year, up from around Bt200 million in 2015. Revenue from Asean should contribute around 75 per cent of the total, up from 25 per cent at present.
