Bangkok--26 May--SET
Khonburi Sugar PCL will list and start trading on The Stock Exchange of Thailand (SET) on May 27, with a market capitalization at IPO price of THB4.55 billion (approx. USD138.32 million), using “KBS” as its trading symbol.
KBS will list in the Agro & Food Industry Group, Food and Beverage Sector, with THB1.36 billion (approx. USD41.50 million) of total funds raised, revealed SET Group Head, Issuer & Listing Chanitr Charnchainarong.
KBS manufactures and distributes sugar as well as sugar-related products. The company has a paid-up registered capital of THB500 million (approx. USD15.20 million), consisting of 350 million existing common shares and 150 million capital increase shares, at a par value of THB1 per share. The company had an offering price of THB9.10 per share to the general public at its initial public offering during May 19-20 and 23. In addition, the company’s existing shareholders offered another 26 million shares to the public. Kasikorn Securities PCL acted as its financial advisor and underwriter.
“KBS’s listing will provide another investment alternative for investors, as they can invest in the agricultural business and food industries, which are fundamental to Thailand’s economy. Moreover, Thailand is a leader in producing sugar for export and consumption, which is in high demand. This is an opportunity for the company to grow, while raising funds through the capital market will help strengthen the company’s financial status,” said Chanitr.
“We are pleased to list on the SET, which helps strengthen our company. The funds raised will be used to expand our electricity energy business, enhance sugar production capacity, invest in agricultural machine development and sugar cane breeding project, and used as working capital. We have strong confidence on the company’s capabilities and believe that we will receive great attention from both institutional and individual investors. KBS’s last three years’ performance showed a continuous revenue increase -- first THB2.97 billion (approx. USD90.47 million), then THB3.30 billion (approx. USD100.60 million), and finally THB4.77 billion (approx. USD145.13 million) in 2008, 2009, 2010, respectively, or an average compound annual growth rate (CAGR) of 26.9%”, revealed, KBS Executive Director Takon Tawintermsup.
KBS’ IPO price at THB9.10 per shares came from book-building of institutional investors, using a P/E of 8.58 (calculated from annualizing net profits of the six latest months to get THB532 million, divided by 500 million shares). KBS’ dividend policy is to pay no less than 40% of net profits after taxes and legal reserves. (As specified in KBS’s prospectus).
KBS’s major shareholders after the groups of Mr. Issara Tawintermsup, Mr. Somkiat Tawintermsup, and Mr. Takon Tawintermsup offered existing shares to the general public on the first trading day were Khonburi Capital Co., Ltd.; Mr. Issara Tawintermsup’s group, Mr. Somkiat Tawintermsup’s group and Mr. Takon Tawintermsup’s group, who will hold 26%, 19.40%, 9.70% and 9.70%, respectively.
For more information on KBS, please see the company’s prospectus at the Securities and Exchange Commission’s website at www.sec.or.th and the general information at the company’s website at www.kbs.co.th or www.set.or.th