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Trinity Securities now more active in investment banking

Nov 10. 2016
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SECURITIES HOUSES have embraced investment banking to top up fee income amid the intense competition in the brokerage business.

Investment banking has been the preserve of foreign and local banks, but brokerages are also getting into the business, according to Trinity Securities, one of active players in investment banking.

Suthang Khonsilpa, managing director of investment banking at Trinity Securities, said yesterday that besides securing mandates for initial public offerings, Trinity was chasing deals on mergers and acquisitions and corporate bond issues.

However, the company has bagged only one IPO mandate this year, short of the plan for three, because of the market situation and long preparation process of companies, she said.

Its IPO client is Comanche International, which will list on the Market for Alternative Investment today.

The overall IPO line-up is expected to be about 25 companies this year, down from 35 in 2015 and in 2014.

The market volatility and long preparation time caused a reduction in the number of IPOs.

Next year should see more IPOs after some offerings were delayed this year. 

Trinity hopes to handle seven to eight IPOs next year, but their launches will come in the second half, Suthang said.

Logistics, renewable energy, and food and beverage are the three industries that will raise capital from IPOs, she said.

The company is focusing more on advising listed companies on issuing bonds and bills of exchange. It only entered that market midyear but has already helped six or seven companies to issue bonds. 

Bonds will still be the fundraising choice of listed and private companies next year because of the low interest rates, she said.

“Trinity’s high-net-worth customers want high-yield assets, so we think we can help both bond issuers and HNW clients meet their goals.” 

Trinity has captured mid-tier companies and newly listed companies whose market capitalisation is not over Bt10 billion.

“We will offer total solutions to customers from the IPO and after listing,” she said.

For example, Comanche said in its filing that the IPO proceeds would be used to support business acquisitions. Trinity will help Comanche to grow inorganically. Investment-banking income contributes 5-10 per cent of Trinity’s revenue. 

The income could go up or down depending on the deal, but is a welcome addition, as making money from the securities business is tough, Suthang said.


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