Bangkok--8 Jul--Ogilvy Public Relations
CK Power, leading power development company of Thailand and ASEAN region, today announced the final offering price of 13baht per share for its initial public offering (IPO) of 220 million shares, or 26% discount when compared to the price of the book value of other companies with similar business, in order to generate optimal benefits to patrons, institutional investors and retail investors.
The Company appointed Advisory Plus Company Limited,Krungthai Advisory Company Limited and Siam Commercial Bank Public Company Limitedas its financial advisors, along with four lead underwriters namely Asia Plus Securities Public Company Limited, Bualuang Securities Public Company Limited, KT Zmico Securities Company Limited and SCB Securities Company Limited; and eight co-underwriters namely Capital Nomura Securities Public Company Limited, CIMB Securities (Thailand) Company Limited, DBS Vickers Securities (Thailand) Company Limited,FinansiaSyrus Securities Public Company Limited, I V Global Securities Public Company Limited, KASIKORN Securities Public Company Limited,Thanachart Securities Public Company Limited and Trinity Securities Company Limited. The share subscription period is 10-12 July 2013andwill tentatively commence trading in the Stock Exchange of Thailand on 18 July 2013 under the ticker symbol CKP in the energy sector.
Dr. Supamas Trivisvavet, Managing Director, CK Power Plc. (CKP), said that “We are offering 220 million shares comprises of 180 million of which will be newly issued ordinary shares and the remaining 40 million shares will be existing shares. Funds proceed will be used to pay down debt, invest in future projects and for working capital. We expect to raise 2,860million baht from the IPO.”
The core strength of CK Power to capture investor confidence is being a power flagship of CH. Karnchang Group with strong growth potentials through stable income with focus on high growth markets, experienced management with development and operational excellence, solid project pipeline, and diversified product portfolio to minimize operation risk.
Currently CK Power invests in 6 high potential power plants in Thailand and overseas, comprising Bangkhenchai Solar Power Plant and NakhonRatchasima Solar Power Plant in NakhonRatchasima, Chiangrai Solar Power Plant in Chiangrai, Bangpa-in Cogeneration 1 Power Plant and Bangpa-in Cogeneration 2 Power Plant in Ayuttaya, and Nam Ngum 2 Hydro Power Plant in LaoPDR. The company is also conducting feasibility study on investment in eight cogeneration projects in the central and northeastern regions of Thailand, as well as Nam Bak Hydropower Plant and XayaburiHydropower Plant in Lao PDR, a major energy source of the ASEAN region. In addition, CK Power is exploring the opportunity for investment in Myanmar, a new, high potential market.
PrasertPatradhilok, President of Advisory Plus Co., Ltd., CK Power’s financial advisor, said that “CK Power is a leader in energy business with strong performance and began to have full revenue recognition from the investments on several power plants in the first quarter of 2013. Electricity power business is highly stable and generates consistent income. Moreover, the industry tends to enjoy constant growth in the long-term future as driven by the growing domestic power consumption at an average of 5% annually, the realization of the ASEAN Economic Community (AEC) in 2015as well as the capacity expansion to accommodate Thailand Power Development Plan (PDP).”
Dr. KongkiatOpaswongkarn, Chief Executive Officer of Asia Plus Securities Public Co., Ltd. which is the lead underwriter for CKP, was confident that the IPO would receive good response since CKP possesses a stable income base,diversified portfolio, strong pipeline and high growth potential. With strong interest from investors who are keen in energy business as well as the company’s sponsors and patrons, a large portion of shares is allocated to patrons, and the remaining parts offered to institutional and retail investors. The final offering price is determined at 13 baht per share, with price-to-book value ratio of 1.28 times, or 26% discount when compared to price-to-book value ratio of 1.73 times of other companies with similar business. The subscription period is 10-12 July 2013, and the stock is expected to list on the Stock Exchange of Thailand on 18 July 2013.
About CK Power
CK Power is a holding company with investment in energy business in Thailand and overseas with focus on diversified product and project portfolio to minimize development and operation risk, including hydro power, solar power and thermal power. The company’s major shareholders are CH. Karnchang Plc. (CK), Bangkok Expressway Plc. (BECL) and Thai Tap Water Plc. (TTW).