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Business Times
a day ago
- Business
- Business Times
Top Thai billionaires-backed groups win digital bank permits
[BANGKOK] Three groups led by Charoen Pokmhand Group, Gulf Development and SCB X have clinched Thailand's new virtual bank licences to boost competition in the nation's banking industry, according to the central bank. ACM Holding, which is part of CP Group, and Advanced Info Service, a Gulf Development's mobile phone affiliate, secured the permits, Bank of Thailand said on Thursday (Jun 19). SCB X, which formed a consortium that includes China's WeBank and South Korea's KakaoBank, also obtained the virtual bank licence. 'We have high hopes that the new licences will increase competition in the banking industry with new innovation and technology,' deputy governor Roong Mallikamas told a press briefing. The announcement came amid a fresh political turmoil in the country that puts the current government on the brink of collapse. The nation is opening its banking industry to more competition that will allow greater access to loans for under-served consumers, following similar moves across Asia. Still, the new virtual banking operators will confront a landscape where traditional lenders are saddled with rising bad loans and weakening credit demand on the back of a soft economy. The timing of these permits is 'tricky and throws up a number of challenges,' said Sarah Jane Mahmud, a senior bank analyst at Bloomberg Intelligence. 'Singapore digital banks have yet to break even, three years after going live,' she said. 'With hefty investment in digital platforms and marketing, Thai digital banks could face a longer wait to generate profit.' Singapore handed out digital banking permits in 2020, followed by the Philippines and Malaysia. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Low-income individuals and small business will also have a greater access to new credit by the new operators of virtual banks, said Roong. The Chearavanont family, which controls CP Group, is one of Asia's richest clans, according to the Bloomberg billionaires Index report. It has businesses spanning from foods and retail to telecommunication and properties. It forayed into digital payment and financial services through fintech unit Ascend Money, with more than 50 million customers in Thailand and six other South-east Asian countries. Gulf Development, controlled by billionaire Sarath Ratanavadi, was created earlier this year by combining his empire – ranging from power to seaports, tollways and telecommunication – under one roof with the goal to accelerate his expansion in digital infrastructure such as data centres. Sarath is Thailand's second-richest person with a net worth of USUS$11 billion. Joining Sarath's group in the bid are Krung Thai Bank and PTT Oil and Retail Business, according to the central bank's statement. BLOOMBERG
Business Times
2 days ago
- Business
- Business Times
CEO's wealth hits US$33 billion as unprofitable Chinese medicine firm's stock soars
[NEW YORK] A blistering rally in a tiny, money-losing traditional Chinese medicine company's stock has vaulted its founder's net worth to among the world's largest fortunes. The firm, Hong Kong-based Regencell Bioscience Holding, was for all intents and purposes trading as a microcap stock on the Nasdaq just eight weeks ago. But its shares have since exploded, gaining more than 82,000 per cent since its Feb 13 low. The move has boosted the value of chief executive officer Yat-Gai Au's 86 per cent stake to US$33.3 billion, according to the Bloomberg billionaires Index, making Au's paper wealth greater than rich-list stalwarts such as Phil Knight and Masayoshi Son. The shares closed up 30 per cent to US$78 on Tuesday (Jun 17) in New York trading, after gaining 283 per cent on Monday following a 38-for-1 stock split. Regencell is an improbable vehicle for creating a multibillion-dollar fortune. Largely self-funded by Au, the company sells herbal medicine treatments for ADHD and autism spectrum disorder. The firm is still in the R&D phase and has never turned a profit since going public, losing US$4.4 million in the fiscal year through Jun 30, 2024, according to filings. Its chief medical officer position has been vacant since the last doctor to hold the job resigned in 2022. 'Both entities [Regencell and its associated foundation] are Gai's passion projects, and he will continue to invest his personal funds to defend what he believes in,' according to Au's bio page on the company's website. 'He has literally put his money where his mouth is by investing over USUS$9 million in RGC to demonstrate his personal belief and commitment.' Regencell did not respond to a request for comment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Family business Founded in 2014, Regencell's main line of business is marketing and licensing traditional treatments developed by the founder's father, Sik-Kee Au. The elder Au has a background in electrical engineering and formerly owned a security alarm business in California. In August 2021, he was found guilty of professional misconduct by a practitioners' board in Hong Kong for overprescribing medicine, according to a public order. Regencell has exclusive rights over traditional medicinal formulas developed by Sik-Kee Au trademarked under the name Brain Theory. They consist of liquid-based herbal compounds taken twice daily, aimed at treating neurocognitive disorders. The younger Au started Regencell after he was diagnosed with ADHD as a child and suffered from dyslexia through much of his schooling. Despite those learning difficulties, he attended the Haas School of Business at the University of California-Berkeley and landed a job at Deutsche Bank in the late 1990s, working on more than US$4 billion in deals before founding Regencell. His older brother Yat-Pang is the founder and CEO of Veritas Investments, a property investment company that manages roughly 250 buildings on the US West Coast. In 2019, Bloomberg valued his wealth at more than US$100 million. As a high schooler growing up in Silicon Valley, Yat-Pang made headlines as a symbol of alleged anti-Asian discrimination in college admissions when he was rejected from UC Berkeley despite an excellent academic record, according to a 1987 Los Angeles Times report. He later went on earn an MBA from Harvard Business School in 2000. Boosting stake Yat-Gai Au has spent more than US$12 million buying Regencell shares since it went public in 2021. The company's next-largest backer is Samuel Chen, an investor whose early investments in Zoom Video Communications made him a fortune when the company's stock soared almost 1,500 per cent during the pandemic. Chen owned a stake in Regencell worth more than US$2.9 billion at Tuesday's closing price. Beyond investing in neurological treatments, Regencell has dabbled in other areas, too. In 2021, the company signed a two-year licensing agreement to distribute traditional Chinese medicine treatments for Covid-19 in Asia. It's unclear what prompted Monday's massive stock move, which wasn't preceded by any company news and came immediately after the forward stock split. Regencell's shares are very thinly traded: Only about 6 per cent of its outstanding shares float, which makes the stock price more susceptible to extreme fluctuations. BLOOMBERG
Business Times
23-05-2025
- Business
- Business Times
Eco-Shop jumps on debut, minting a new Malaysian billionaire
[KUALA LUMPUR] Shares of discount-chain Eco-Shop Marketing gained on their debut on Friday (May 23) as Malaysia's biggest initial public offering of the year created a billionaire. The stock jumped as much as 10.6 per cent in early trading, before paring gains to close 6.2 per cent higher at RM1.20. Eco-Shop, which sells household items at a fixed price of RM2.60 (S$0.79), raised RM974 million in an offering that valued the company at about US$1.5 billion. That's the most since an IPO by 99 Speed Mart Retail Holdings in September. The time could not have been better for Eco-Shop, according to chief executive officer Jessica Ng. 'If you look at the current economic situation, our business model is even more needed. We stretch the ringgit for many, many people,' Ng said in a Bloomberg News interview. Potential income growth for most of the population over the next two years would also ensure 'a big catchment' and room to expand, she added. The US dollar-store operator plans to use proceeds from the share sale to add 70 outlets per year for the next five years, essentially doubling its store count. The debut is a positive sign for Malaysia's market, whose momentum after the 55 IPOs it saw in 2024 was derailed by tariffs. Although Eco-Shop's IPO shares were eventually priced lower, the listing shows there is still traction for low-cost mass consumer brands among investors. Founded by Lee Kar Whatt and his partners in 2003, Eco-Shop has grown to 350 stores across Malaysia. Lee – who will end up with a US$1.15 billion stake post-listing, according to the Bloomberg billionaires Index – still works out of the company's headquarters in Jementah, a small town located in the southern state of Johor. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The company is looking to expand the portfolio of its in-house brands, which make up more than half of sales, to have better control over cost and quality. Ng said the group also has mechanisms in place that allow it to keep the cost of imported products at a minimum. Eco-Shop, which sells everything from snacks to stationery and cleaning products, reported a 45 per cent on-year increase in net profit to RM61.7 million for the three months through February. Revenue jumped 17 per cent to RM736 million. No doubt, competition has intensified in recent years, particularly from established rivals like Mr DIY Group (M) and smaller upstarts run by entrepreneurs from mainland China. But Ng said Eco-Shop can carve out its own niche, given its 68 per cent market share in the country's discount-store sector. Ng, who previously worked at multinationals, said Malaysian brands are generally 'operationally good' and many of them have become 'irreplaceable' due to the scale they have achieved in their respective categories. Resilient domestic demand will continue to help local chains like Eco-Shop thrive, she said. BLOOMBERG
