BANGKOK, The Stock Exchange of Thailand (SET) and Krungthai
Bank pcl (KTB) will launch its first ever fractional depositary receipts (DRx)
to make high-flying global stocks more affordable on the Thai bourse. The first
two DRx based on Apple and Tesla as underlying stocks, issued by Krungthai Bank
pcl (KTB), will start trading on September 29.
SET President Pakorn Peetathawatchai said that new product development is an
integral part of SET’s strategic plan to cater to the needs of investors. The
latest initiative is the launch of DRx, designed to suit with the investment
behavior of new generations who want to invest in the world’s leading stocks
with a small amount of money.
DRx is a type of DR, which enables Investors to get benefits similar to direct
investment in foreign shares. Investors are able to buy or sell a fraction of DR
unit (starting from 0.0001 unit) during trading hours of the underlying
securities domiciled in international market. Trading hours for APL80X and
TSLA80X which are based on Nasdaq-listed Apple Inc. and Tesla Inc. stocks,
respectively, will then start from 20.00 hrs. to 04.00 hrs. of the following
day.
Payong Srivanich, Krungthai Bank’s CEO, stated that as a leading commercial bank
in Thailand, Krungthai Bank is determined to continue developing financial
products and services to respond to all investment and savings needs of the
customers. The two DRx representing the stocks of Apple Inc. and Tesla, Inc.,
which are listed in the U.S.’s NASDAQ stock market, are fundamentally strong and
have high growth potential. Besides, Thai investors are familiar with them. The
two DRx, namely AAPL80X (Apple DRx) and TSLA80X (Tesla DRx), will become
available to investors through the Stock Exchange of Thailand at the same time.
Krungthai Bank prioritizes corporate responsibility and takes into consideration
all groups of stakeholders. This fortifies Krungthai’s position as a market
leader in ESG financial solutions who is ready to address the Sustainable
Development Goals (SDGs) by improving the quality of life of all customers
through the development of digital infrastructure and using innovation as the
driving force to propel the country’s economy toward sustainability. It also
aims to address customers’ savings and investment needs by removing constraints
and allowing Thai investors, especially retail investors, to easily and
conveniently invest in foreign shares through the Stock Exchange of Thailand.
Apple Inc. is a world leader in technology that constantly innovates and
launches pioneering products to the market, including Mac, iPhone, Apple Watch
and iPad. It has a loyal customer base thanks to its ability to create an
ecosystem that makes Apple’s devices even more easy to use, which is exactly
what the younger generation wants. As a result, Apple’s customer base continues
to grow and existing customers are retained. Tesla is a leader in the automotive
industry and the world’s biggest electric vehicle (EV) manufacturer. The
company has been investing heavily in the past few years to boost efficiency and
capacity to meet rising market demands. Tesla recorded a profit margin of 25.3%
in 2021 and 27.2% in the first half of 2022 and it aims to accelerate the
transition to a sustainable future.
Source: The Stock Exchange of Thailand
