Alpha X targets SET listing and loan growth

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Alpha X targets SET listing and loan growth

The lender aims to have a portfolio of 20 billion billion

Mr Wasin says Thailand’s large luxury car loan market has provided an opening for Alpha X.

Alpha X Ltd, a luxury car loan provider under SCB X, aims to grow its car loan portfolio to 20 billion baht by 2025 and plans to list on the Stock Exchange of Thailand (SET) within five years.

The company started its vehicle lending business in January 2022, covering large purchase loans, refinancing and leasing. He is currently offering car title loans.

Alpha X’s loan service covers high-end vehicles, yachts, riverboats and fat bikes, with a minimum price of 3 million baht.

Wasin Saiyawan, managing director of Alpha X, said the company is focusing on high net worth individuals who have high purchasing power, high demand for loans and who have not been relieved of the economic turmoil of the past two years. .

While the pandemic has hurt the country’s new car sales, the luxury car market has been less affected.

For 2021, the country’s new car registrations totaled 490,000 units, down 28% from 2019, while luxury car registrations totaled 26,000 units, down 17%.

SCB EIC, a research firm of Siam Commercial Bank (SCB), predicts that luxury car sales for 2022 will rise 14% year-on-year, in line with Thailand’s economic rebound.

With the positive economic trend, Alpha X aims to increase outstanding luxury auto loans to 5 billion baht this year and keep non-performing loans below 1%.

The company plans to expand its loan portfolio to 20 billion baht by 2025.

Outstanding car loans in Thailand are around 2 trillion baht per year, of which 200-300 billion baht, or 10-15%, are luxury vehicle loans.

The large market for luxury auto loans leaves more room for the company to break into this segment, he said.

The company offers a competitive interest rate for loans averaging 2% per annum, Wasin said.

He said the company had applied for a car title loan license from the Bank of Thailand and was awaiting approval.

Alpha X plans to offer this loan product around the middle of this year, Wasin said.

“As a startup, Alpha X plans to be listed on the SET in five years, in line with the business strategy of our parent company, SCB X,” he said.

In the same vein, SCB informed SET on Tuesday of a takeover bid for the bank’s shares by SCB X, as part of the ongoing restructuring plan of the SCB group.

According to the filing, SCB X is making a tender offer for the existing shares of SCB in exchange for the same type of securities of SCB X at a swap rate of 1:1, which means 1 newly issued ordinary share of SCB X for 1 ordinary share of SCB, and 1 newly issued ordinary share of SCB X for 1 preferred share of SCB.

The tender offer process began on March 2 and will run until April 18, in preparation for a listing of SCB X on the SET and the delisting of SCB shares from the local stock exchange.



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