Bangkok--10 Jun--Ogilvy Public Relations
Nok Airlines Public Company Limited (Nok Air), a leader in low cost airline business, today announced the final offering price of 26 baht per sharefor its initial public offering (IPO) of 187.5 million shares. Book building held earlier found that at the highest price of 28 baht per share, the demand was at around five times higher than the number of offered shares. However, considering the fluctuating capital market and the Company’s intention to offer good returns to both institutional and individual investors, the Company decided to set the price at 26 baht per share. At this price, the demand was around six times of the offered shares. At the final offered price, the P/E ratio is approximately 11.5 times based on analysts’ average profit projection in 2013.
The Company appointed The Siam Commercial Bank Public Company Limited as its financial advisor, SCB Securities Company Limited as its lead underwriter and six underwriters namely FinansiaSyrus Securities Public Company Limited, Maybank Kim Eng Securities (Thailand) Public Company Limited, KASIKORN Securities Public Company Limited, Country Group Securities Public Company Limited,Thanachart Securities Public Company Limitedand RHB OSK Securities (Thailand) Public Company Limited and. The shares will tentatively commence trading in the Stock Exchange of Thailand on 20 June 2013 under the ticker symbol NOK in the Service, Transport & Logistics sector.
Mr. Patee Sarasin, Chief Executive Officer of Nok Air, said, “We are strongly confident of the success of the IPO scheme.We are offering 187.5 million shares comprises of125 million of which will be newly issued ordinary shares and the remaining 62.5 million shares will be existing shares offered by Aviation Investment International Limited. Nok Air expects to raise 3,250 million baht from the IPO. Funds proceed will be uses for working capital to support business expansion and aircraft procurement. While the existing shares of 62.50 million shares, offered by the existing shareholder, Aviation Investment International Limited, areexpected to raise 1,625 million baht.”
“Nok Air’s competitive edge comes from our unique market positioning and value-added services that best address needs of passengers who are mostly Thais, our extensive destination network, high flight frequency, and our diversified fleet which allows us to offer greater flexibility to offer better services corresponding to the number of passengers in each route. With safety as our priority, Nok Air has partnered with Lufthansa Technik for aircraft maintenance. Our growth strategy is to focus on domestic routes first and foremost to support rapid development driven from urbanization and needs for fast, convenient and affordable air transport services, but also explore adding flights to neighboring countries. In the near future, we have plans to launch flights to major destinations in Myanmar and will also explore some Chinese cities further down the road. I strongly believe that Thailand is poised to become the regional air travel hub, thanks to its strategic location and readiness of the Don Muang International Airport to facilitate a large volume of passengers,” concluded Mr. Patee.
Miss VoradaThangsurbkul, Executive Vice President — Investment Banking Division2,The Siam Commercial Bank Public Company Limited which is the financial advisor to Nok Air, said that NokAir is a leader in Thailand’s low cost airline business. It has clear business advantages especially the largest route coverage in the country in terms of frequency and passenger volume as well as strong operational growth. These advantages contribute to Nok Air’s continuous market share growth from 16.2 percent in 2010 to 22.3 percent in 2012. Its performance also grows constantly. In 2012, its major income is 8,217.6 million baht and net profit of 504.7 million baht. For the first quarter this year, the continual growth trend is positive. The major income in the first quarter is 2,811 million baht and net profit is 425.3 million baht.”
M.L.ThongmakutThongyai, Chief Executive Officer, SCB Securities Company Limited which is the lead underwriter for NOK, was confident that the IPO would receive good response from both institutional and retail investors. The book building showed that institutional investors’ demand was higher than the number of offered shares. The total offering size is 4,875 million baht, comprising NOK’s proceed of 3,250 million baht and the existing shareholder’s proceed of 1,625 million baht. In addition, the final offering price was determined via the book building process which has resulted in a price that reflects market demand as accurately as possible closest to the time of subscription. Coupled with the strong business fundamentals, including the airline’s most extensive service coverage, more flight frequency, efficient cost management, a wide range of ticket sales channels and strong financial performance, the company is confident that the fund raising scheme will be successful. The subscription period is 12 — 14 June, 2013 through SCB Securities Co., Ltd., a lead underwriter and 6 co-underwriters and expected to list on the Stock Exchange of Thailand on 20 June 2013.