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.
Core business is more than
of total assets of the Company
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 Hospital Company Limited that operates the business of private hospital and clinic for patients. On 1 May 2021, Vimut Hospital has begun its operation.
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.
The objectives are in accordance with the Company’s strategic plan, as follows:
Maintain leadership in residential real estate market for low to middle income customers (Value Segment)
Increase the Company’s market share in residential real estate market for high income customers (Premium Segment)
Explore new business opportunities with a focus on business that can generate stable and sustainable recurring income (Recurring Income)