At Pruksa, we believe that a well-balanced life is the good combination between the quality of living environment and health caring, which can lead to true happiness. Pruksa Holding, therefore, aims to improve the well-being of our customers by developing the products and services to express the deep care at the holistic level; home and health. This is not only to help enhance Thai people’ lives one step further, but also to grow business sustainably.
On March 16, 2016, Pruksa Holding Public Company Limited was registered for public company establishment of Holding Company with initial registered capital of Bt10,000 operate the business that mainly generates revenues from shareholding in other companies. Later, the Extraordinary Shareholders’ Meeting No. 1/2016 approved a resolution to allow an increase in the Company’s registered capital from Bt10,000 to Bt2,273,217,600 by issuing new common stocks totaling 2,273,207,600 stocks at par value of Bt1 per stock to support the submitted tender offer and the issuance of warrant to buy common stocks of the Company to be consistent with increase in the Company’s registered capital. The initial trading in Stock Exchange of Thailand was on 1 December 2016 under “PSH” ticker.
The core business of the Company is real estate development business for sale. The Company shall maintain the proportion of real estate development business for sale which is the core business is not less than 75% of total assets of the Company. After restructuring completion, Pruksa Real Estate Public Company is the subsidiary of the Company that operates core business and generates main revenues from dividend acquired from shareholding in Pruksa Real Estate Public Company Limited and its subsidiary and/or associated company which will be invested by the Company in the future.
The Company’s policy is to focus on investment diversification and seek the opportunity in operating new businesses in addition to residential real estate business for sustainable growth and ability to generate recurring revenues. Therefore, the investment in hospital business and health service center was approved and executed through two subsidiaries including (1) Vimut Holding Hospital Company Limited which is the company that operates the investment business in other companies, and (2) Vimut International Hospital Company Limited that operates the business of private hospital and clinic for patients. At present, it has been under business planning and expected to be opened for service in 2020 onwards. Therefore, revenues and overall operations have been mainly derived from real estate business group.
Objectives of Establishing a Holding Company
- To increase flexibility to expand the business and facilitate strategic partnership with partners who have expertise in each particular area.
The holding company structure will make it easier for the Company to form joint ventures or strategic alliances with partners who have expertise in each particular business In the future, as illustrated in the 3 diagram below. The increased opportunity to expand into new businesses will lead to greater competitiveness and higher return to shareholders.
- To limit and manage business risks.
- To increase effectiveness and flexibility of the Company’s management structure to better suit business operations in the future.