Bangkok--11 Nov--MasterMind Communications
Namyong Terminal set THB 11.90/share as the book-building-based price of its IPO shares, which will be available for subscription during November 13-15 and first traded on the stock market on November 25. The company signed contracts designating TISCO Securities as its lead underwriter and six more securities firms as co-underwriters. TISCO Securities, as financial advisor, expressed confidence of a warm welcome, and Namyong Terminal’s management highlighted the company’s strong positive outlook, as supported by the growing strength of Thai automotive industry which is standing at Asean’s No. 1. This will ensure more than one million cars export through Namyong’s A5 terminal.
On 8 November 2013, Namyong Terminal Public Company Limited organized a signing ceremony for the appointment of TISCO Securities Company Limited as a lead underwriter of its capital-increase IPO shares, and 6 co-underwriters: KGI Securities (Thailand) Public Company Limited, CIMB Securities (Thailand) Co., Ltd., SCB Securities Co., Ltd., Nomura Securities Public Company Limited, Bualuang Securities Public Company Limited and Asia Plus Securities Public Company Limited.
Mr. Tanachai Bunditvorapoom, Head of Investment Banking of TISCO Securities, the financial advisor and lead underwriter of Namyong Terminal revealed that after TISCO surveyed the demand of Namyong’s share from Thai and foreign institutional investors by book-building process with the share price range of THB 11.50 — 11.90/share on 6 November 2013, the result was remarkably good. Institutional investors expressed overwhelming demand for Namyong’s share willing to invest at the highest-end of THB 11.90/share by having total demand of greater than 13 times of the allocated share portion to institutional investors. Therefore, TISCO and the company set the final share price for initial public offering at THB 11.90/share. Namyong’s shares will be available for subscription during November 13-15 and first traded on the Stock Exchange of Thailand on November 25.
TISCO Securities is confident that Namyong Terminal’s IPO shares will be warmly welcomed by both institutional and retail investors due to its solid fundamental as the country’s largest Ro/Ro terminal operator in terms of exported cars’ volume. Its A5 Terminal at Laem Chabang Port possesses the highest market share of more than 80% for over a decade. Namyong is best-positioned to capture the continuous growth potential of automotive industry as the automakers have chosen Thailand to be one of their core production bases for car export to worldwide market, which will definitely drive the volume of car export through A5 Terminal.
In addition to A5 Terminal, the company and NYK, a leading global shipping company listed in the Stock Exchange of Japan, jointly invested in Laemchabang International Ro-Ro Terminal Limited (“LRT”), a general cargo and Ro/Ro terminal operator of C0 Terminal, Laem Chabang Port. Namyong holds 20% of LRT’s shares with an option to purchase another 29% of LRT’s shares from NYK, or maximum total shareholding in LRT of 49%.
For the IPO, the company will offer 205.50 million of newly issued shares, equivalent to 33.15% of the company’s post-IPO issued and paid-up shares. Currently, the company’s registered capital is THB 620 million and issued and paid-up capital is THB 414.50 million, with a par value of THB 1.00/share
Mr. Theparak Leungsuwan, Chief Executive Officer of Namyong Terminal, said that the Thai automotive industry has a very high competitive edge in a market, thanks to the government’s policy of supporting Thailand to be a center of auto production hub in Asia, availability of local skilled labors, and a strong cluster of auto parts industry. These factors are the key reasons why automakers choose Thailand as their core production base for export.
According to the Automotive Industry Master Plan for Years 2012 — 2016, prepared by Thailand Automotive Institute, Ministry of Industry, total car production is expected to rise from its current level of 2.5 million units to 3 million units by 2015, about 0.7-1 million of which would be supplied locally and the rest internationally. This means a significant increase in automotive exports of Thailand, a direct positive effects to Namyong’s business and financial performance as Thailand’s main Ro/Ro terminal for automobile exports with a market share of more than 80% and number of cars passed through A5 Terminal approximately amounted to 900,000 units in year 2012.
“Major automakers around the world show their interests in investing and establishing their production hubs for export in Thailand due to the country’s extensive facilities and the industry’s growth potential. From 10-year historical data, Thailand’s average growth of car exports is 17.8% per year and forecasted to be maintained at this level in a long-run. In the next two years, Thailand will export about 1.5 million cars, securing its position as a top automotive player in the Asean, and this will hugely benefit Namyong Terminal’s business,” Mr. Theparak said.