Aira & Aiful looks to MAI listing after 2018
AIRA & AIFUL, operator of A Money consumer-finance branches, expects its own capital to be enough to support loan growth for only three more years, so it is laying plans to tap the Market for Alternative Investment (MAI) after 2018 for further expansion.
Chief executive officer Katsuhiko Madono said yesterday that under the three-year plan, A&A would invest heavily in branch expansion to build up its customer base.
The company wants to increase accounts dramatically to more than 500,000 in 2018 from 60,000 currently, and outstanding balances to Bt5 billion from Bt1 billion.
To achieve this, the company has to book Bt1.5 billion to Bt2 billion in new loans. Each customer seeks credit of around Bt20,000.
The company’s registered capital of Bt2.5 billion can support the targeted Bt5-billion outstanding balance.
The stock market is the proper funding source. However, under the new regulations for listing on the MAI, a company must show profits for three straight years.
A&A hopes to turn profitable after 2018, but it might review the listing plan if it is not ready.
Another source of funds is bank loans. A&A can borrow from both local and Japanese banks.
A&A will have to expend enormous resources to open outlets during the three years, so it will not produce profits during the period.
The company will focus its network growth on the provincial market.
A&A aims for 150 locations next year, more than doubling the 61 outlets it operates now.
The firm hopes A Money will rank among the top three in the personal-loan market within three to five years.
A Money was introduced in Thailand last year by targeting people earning Bt5,000 monthly. Priority customers are first-jobbers and employees located in cities and industrial areas. One-third of customers are people with monthly incomes of Bt10,000-Bt15,000.
The firm plans to add an online channel to acquire first-jobbers who prefer using the Internet.
The online channel will be limited to customers in Bangkok and nearby areas.
The company has partnered with Thanachart Bank to facilitate cash withdrawals at more than 2,000 of the bank’s automated teller machines nationwide. It is talking with many banks in Thailand to make ATM withdrawals more convenient for its customers.
