The share price of VGI Public Company Limited (SET: VGI) extended gains on Friday as further details on the company competing for a virtual bank license helped boost its share price.
Stock prices rose 2.5% in the morning session on Friday to THB2.46 per share. VGI has risen 51% this month.
According to Mr. Kavin Kanjanapas, Director of VGI and CEO of BTS Group Holdings Public Company Limited (SET: BTS), the company, along with 3-4 partners, is preparing to submit the application for the virtual bank license early next month. VGI is expected to secure around 25% ownership in the joint venture.
While the specific details of the local bank partner have not been disclosed yet, there have been reports indicating interest from Singapore’s Sea Group in acquiring virtual banking licenses in Thailand. The conglomerate from Singapore aims to pursue the permit through Seamoney Thailand, a platform offering digital financial services, including payments and lending through ShopeePay and SPayLater.
With an extensive customer base of eight million from Rabbit Holdings Public Company Limited (SET: RABBIT), a real estate developer offering leasing, service, sales, and management solutions, VGI is well-positioned to expand its financial services footprint through its subsidiary, Rabbit Cash. Post-licensure approval, Rabbit Cash intends to introduce cash deposit and withdrawal services in addition to its existing digital lending offerings.
Mr. Kavin emphasized that despite VGI’s foray into virtual banking, the core focus of the company remains on Out-Of-Home (OOH) advertisements. He hinted at an upcoming merger or acquisition deal, underscoring VGI’s commitment to diversifying its business interests while maintaining its OOH media stronghold.
