Bangkok--22 Feb--SET
Market for Alternative Investment (mai) will list Megachem (Thailand) pcl, a distributor of specialty chemicals, on February 23, under the ticker symbol "MGT". The company has a market capitalization at its initial public offering (IPO) of THB 756 million (approximately USD 21.6 million).
mai President Prapan Charoenprawatt said that MGT would list and start trading on mai in the Industrials industry group. MGT distributes a wide range of specialty chemicals for over 1,000 products from more than 400 makers/distributors to cover customers in many industries such as polymerization, paint, and metal finishing industries, and others. The company has an associate company, Vertis Latex Co., Ltd which is a latex pillow and mattress producer, anoriginal equipment manufacturer or OEM company catering to various customers.
MGT has a paid-up registered capital of THB 200 million, consisting of 300 million existing common shares and 100 million newly issued shares with a par value of THB 0.50. During February 15-17, it offered newly issued shares to the general public via IPO at THB 1.89 each, for a total of THB 189 million. Capital Nomura Securities pcl is the financial advisor and underwriter.
MGT Chief Executive Officer Vitthaya Inala said that the company sells the specialty chemicals used as additives in industrial processes and can meet customers' demand in both features and prices. MGT also provides ordering services of specialty chemicals services and logistic services to match each customer's requirements. The fund raised would be used to set up branches in Cambodia, Myanmar and Thailand, and as working capital to fulfill the company's goals.
MGT's three major shareholders after the IPO are Vitthaya Inala (37.68 percent), SGX-listed Megachem Limited (36.19 percent) and Akechonsith Woraharn by KTB Securities (Thailand) Co., Ltd. (1.25 percent). The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 23.86 times calculated by using the company's net profit in the past four quarters (October 1, 2015-September 30, 2016) of THB 31.69 million, divided by fully diluted shares, representing earnings per share of THB 0.08. MGT's dividend policy is to pay no less than 40 percent of net profits after taxes and reserves.
For more information on MGT, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and general information, please visitwww.megachem.co.th, as well aswww.set.or.th.