Krungthai is set to upgrade foreign stock investment with “Alibaba DR”, a depositary receipt (DR) representing shares of a global tech company. The IPO subscription for retail investors will be available via Krungthai Zmico Securities and Finansia Syrus Securities on 14 – 17 February 2022. It is highly advisable to open a trading account and subscribe to the DR via online channels to minimize the risk of contracting Covid-19.
Rawin Boonyanusasna, Senior Executive Vice President, Head of Global Markets Group at Krungthai Bank, said Krungthai Bank has always been highly committed to developing financial products and services that cover all diverse needs of customers, including the needs relating to savings and investment. It is now ready to issue a depositary receipt representing the stock of Alibaba Group Holding Limited or Alibaba DR, which is the first DR in Thailand to represent the stock of a leading global tech company like Alibaba. Its three main advantages are how simple it is to make investment with the DR, how it opens up the opportunity to invest in a global tech company, and the fact that the DR will be traded in the Stock Exchange of Thailand in Thai Baht with the minimum trading amount of only 1 DR.
The IPO subscription will be available for retail investors on 14 – 17 February 2022 at 12:00 pm (midday). The offering price will be between 4 – 8 Baht per DR. Interested investors can apply for subscription with the two underwriters: Krungthai Zmico Securities Company Limited and Finansia Syrus Securities Public Company Limited.
Subscribers will have to pay the full subscription price of 8 Baht per DR upfront. If the final price is different from the subscription price, the difference will be returned to the investors according to the details prescribed in the prospectus. The final price will be announced on Krungthai Bank’s website.
“The issuance and offering of Alibaba DR eliminates several limitations on foreign stock trading faced by Thai investors, especially its accessibility, because they can make investment in foreign stocks using the local trading account they already have. The minimum trading amount in the stock exchange is only 1 DR and it is traded in Thai Baht, allowing Thai investors, especially retail investors, to easily and conveniently invest in foreign shares through the Stock Exchange of Thailand just like trading local shares, without having to open an offshore trading account.”
For the IPO, the minimum subscription will be as prescribed by each underwriter. The represented stock, Alibaba, is a global tech company and a leader in e-commerce with subsidiaries in a wide range of businesses including cloud computing, financial service (Alipay), media and entertainment (Youku) and logistics (Cainiao). Furthermore, Alibaba reports environmental, social and governance (ESG) impacts and satisfies ESG criteria. Therefore, this is in alignment with the bank’s mission to take into account all stakeholders when operating its business and fortifies the bank’s position as a leading ESG financial solution provider that seeks to tackle global challenges.
Krungthai Zmico Securities advises investors who do not have a Krungthai Zmico trading account to prepare for the subscription by opening an online account in WealthMe mobile application. The account opening process is quick, convenient and it requires no paper submission, eliminating the need to physically visit the company to open an account. Investors can express their interest in Alibaba DR at https://www.ktzmico.com/th/iporegister on 7 – 17 February 2022 at 12:00 pm. For more information, please contact your account manager or call 02-695-5559 and 02-695-5555.
Finansia Syrus Securities offers the DR with minimum subscription as prescribed by the bank and has no maximum limit for the subscription. Investors can complete the subscription in two simple steps: 1) opening an online account for the subscription which requires no paper submission and takes only 8 minutes (online account opening is also available on weekends) by 13 February 2022; 2) subscribing and confirm the subscription online at https://www.finansiahero.com or https://www.fnsyrus.com/baba80 from 14 February 2022 at 08:30 am to 17 February 2022 at 12:00 pm. For more information, please contact 02-782-2400.
Alibaba DR will be offered through IPO by two main underwriters: Krungthai Zmico Securities Company Limited and Finansia Syrus Securities Public Company Limited. Retail investors who are interested can visit any Krungthai branch or contact Krungthai Contact Center at 02-111-1111 for more information.