Thurgauer Kantonalbank IPO – Reasons to be Cautious

These two figures show why TGKP may not be a good investment. See my previous post about the Thurgauer KB IPO.

If we took the neighbouring cantonal bank St.Galler KB as a proxy and looked at its loan growth (CAGR +5.6%) and also at Assets under Management compound annual growth rate (AuM CAGR) of -0.8%, we can see that the valuation put on TGKP participation certificates may be aggressive as the eastern part of Switzerland isn’t seeing good growth rates for underlying business.

Fig 1 St.Galler KB Loans (SGKN)


Fig 2 St.Galler KB Asset under Management (SGKN)



As the Thurgauer Kantonalbank hopes to place another 7.5% in the future, so after the 12.5% this week, one can only hope they don’t set the price too high!

Kommentar verfassen

Trage deine Daten unten ein oder klicke ein Icon um dich einzuloggen:

Du kommentierst mit Deinem Abmelden /  Ändern )

Google Foto

Du kommentierst mit Deinem Google-Konto. Abmelden /  Ändern )


Du kommentierst mit Deinem Twitter-Konto. Abmelden /  Ändern )


Du kommentierst mit Deinem Facebook-Konto. Abmelden /  Ändern )

Verbinde mit %s