Bangkok--23 Nov--IR PLUS
Chow Steel Industries Public Company Limited aims to offer its Initial Public Offering (IPO) of 200 million shares after the SEC’s counting as day one. The Company expects to be listed on the Market for Alternative Investment no further than this December to raise fund for working capital to serve the growth of its upstream steel business. The Company is confident that its revenue in this year will go over Baht 5,000 million after the first 9 months it had already achieved 85% of the target revenue with orders awaiting for delivering toward the year end. It is believed that this continue to grow to next year in accordance with demand and its expansion of customer base.
Mr. Anavin Jiratomsiri, CEO of Chow Steel Industries Public Company Limited or CHOW, the large local manufacturer and distributor of internationally accepted quality steel billets, said that the Company has prepared for the Initial Public Offering (IPO) of 200 million common shares with the par at Baht 1 per share after the date its filing form to be listed on the Market for Alternative Investment (MAI) was counted as day one by the Securities Exchange Commission (SEC) on November 23,2011
Chow Steel Industries Public Company Limited is the large local manufacturer and distributor of internationally accepted quality steel billets. Our upstream steel can become variety of steel processing for construction such as Round Bar and Deformed Bar which are the main material used within construction projects such as houses, commercial building, bridges, dams, toll ways, and high rise buildings, etc. The Company has a registered capital of Baht 800 million, consisting of 800,000,000 common shares at the par of Baht 1 per share; and a paid up capital of Baht 600 million, consisting of 600,000,000 common shares at the par of Baht 1 per share and 200 million shares after the IPO which are unpaid capital of 200 million shares at the par of Baht 1 per share, then, the total paid up capital will become Baht 800 million. The IPO will be offered at the beginning of this December and the Company’s shares are expected to be listed on the mai around the mid of December 2011 with Tripple A Plus Advisory Co., Lts. as its financial advisor.
CHOW plans to use the proceeds for working capital of its business operation to serve the growth of steel business which is expected to have continual growth due to the government’s mega projects and its expansion of customer base to compensate the market of imported steel as Thailand is still the net importer of the Billet. As a result, the Company’s increasing growth comes from its advantages in terms of the delivery cost and on-time delivery which help its customers to easily handle their inventory without ordering big lots of billets when compared to the importing. Apart from relying on the expectedly increasing orders of the existing customers, the Company has also approached its marketing to new customers.
"The proceeds are used for working capital of its business expansion to better liquidate the expansion as well as to lower the cost which will result in better net profit. After the offering of the shares of capital increase, the shareholding ratio of the “Jiratomsiri” will decrease from 84.5% to 63.4% as to provide an opportunity for investors in general to directly invest in the Company’s shares,” said Mr. Anavin.
The Company’s revenue for 2011 are targeted to grow around 30% from Baht 3,893 in the previous year to the higher of Baht 5,000 million. Within the first 9 months of this year, the Company achieved Baht 4,254.18 million, or accounting for 85.08% of the target. The Company is confident that by the end of this year, its revenue will accomplish the target despite in this year Thailand has encountered severe flood; the flood has no affect on orders and delivery of the Company.
In addition, there are additional new orders. At present, there are orders to be continuously delivered till December. In 2012, it is believed that the steel business will continue to expand from 2011 due to the government’s mega projects. Moreover, the flood has urges more demand of steel to be used in renovation and repair of structures such as residence, commercial buildings, bridges, dams, and toll ways which will support the sales volume growth of the steel billet of the Company.
Ms. Pinmanee Makmontana, Managing Director of Triple A Plus Advisory Co., Ltd., the Financial Advisor of Chow Steel Industries said the Company is confident that the business of Chow Steel Industries is growing up due to the economic recovery as well as the increasing steel demand in construction projects, as well as its continual customer base expansion, particularly its entering into the market to replace the importing which receive good responses from the targeted customers. Those are the important factors to support business growth in the future which has already reflected in the 9-month operating results which were reported with an impressive growth. Thus, it is confident that the shares of the capital increase will receive a good response from the investors.
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