Phatra Securities has turned the tables on its competition in the primary capital markets and securities trading business this last year.
Phatra, an entirely independent firm, has led deals including an IPO that exceeded $1 billion and in 2019 alone has handled over Bt1 trillion ($32 billion) in securities trades, according to data from the Stock Exchange of Thailand.
Last year Asiamoney awarded Bualuang Securities, an arm of Bangkok Bank, the title of best securities house. But this year there is no question that Phatra, led by chief executive Aphinant Klewpatinond, has taken the lead among its local peers. The brokerage has captured 8.53% of the secondary trading market so far in 2019; contrast that with the 6.16% of its nearest competitor Maybank Kim Eng Securities Thailand, a wholly owned subsidiary of Malaysian firm Maybank.
Bualuang is trailing with a 4.23% market share, ranking eighth on the Stock Exchange of Thailand’s broker league table. Last year it was slightly higher, ranked sixth with Phatra ranked seventh, both with about 4.5% of the market. But perhaps the biggest change between the two has been the larger slice of the pie taken by Phatra in the capital markets. Whereas during Asiamoney’s previous award period Bualuang was noted for its work on IPOs and block trades, this time it is Phatra.
The securities house led the $1.37 billion IPO of Thailand Future Fund (TFF) in October 2018 alongside Finansa Securities and Krung Thai Bank, as well as international underwriters Bank of America and JPMorgan. Despite being the country’s largest IPO in five years in a weak market, it was priced at the top of expectations.
Bualuang and Phatra have also shown they can set aside their differences and work together. The pair handled the domestic IPO process for Thai energy drink manufacturer Osotspa, again with BofA and JPMorgan onside. The deal, in October, was priced at the top of the marketed range.
As part of the listing, Osotspa’s main shareholder Niti Osathanugrah wanted to offload 4.5% in the company. The domestic firms used their local investor networks to sell the stock at the IPO price through a lot placement as Osotspa debuted on the SET.
Apart from a few eye-catching deals, Thailand’s primary markets have been quiet over the last year. Despite that, Phatra has generated enough business to lead Dealogic’s global coordinator and bookrunner league table for Thailand, while working on deals from TFF’s billion-dollar listing to the $65 million IPO of a local hospital.