Bangkok--16 Dec--SET
The Stock Exchange of Thailand (SET) welcomes G Capital pcl, a hire-purchase provider for agricultural machinery, to its Market for Alternative Investment (mai). The company will list and start trading on December 17 under the ticker symbol "GCAP,” with market capitalization of THB 540 million (approx. USD 16.8 million).
SET Executive Vice President Chanitr Charnchainarong said that GCAP was the 13th IPO listed on mai and would start trading this month, reflecting that the Thai stock market remained an alternative fundraising source for business expansion with reasonable costs, although the current negative factors had hit economic and investment sentiment.
GCAP provides hire purchase services for new and used agricultural machinery, including Rice Harvester Combines, Crawling Rotavators, and Tractors to farmers. The company operates under the concept of "Your lending Partner in Agricultural Finance”. The company is a joint venture between Songnam Co.,Ltd., owned by Sarasas family, and the Government Savings Bank to support funding so agriculturists can improve their effectiveness.
GCAP has a paid-up registered capital of THB 100 million, with a par value of THB 0.50 each, consisting of 150 million existing common shares and 50 million newly-issued shares. The new shares were offered to the general public through an IPO on November 26-28, at THB 2.70 per share, for a total of THB 135 million. Country Group Securities pcl is the company's financial advisor and underwriter.
Santi Hokittikul, Managing Director of GCAP, said that fundraising proceeds would be used for working capital in order to strengthen and expand its business to cope with growing loan demand.
GCAP's three major shareholders after the IPO are the Songnam group (47.26 percent), Government Saving Bank’s Private Fund by UOB Asset Management (Thai) Co.,Ltd (13.12 percent); and United Overseas Bank’s Private Fund by UOB Asset Management (Thai) Co.,Ltd (13.12 percent). The IPO price had a price-earnings (P/E ratio) of 13.85 times, calculated using earnings over the last four quarters (from the fourth quarter of 2012 to the third quarter of 2013), divided by the number of fully-diluted shares, equivalent to earnings per share of THB 0.195. The company's dividend policy is to pay no less than 50 percent of net profits after corporate taxes and reserves.
For more information on GCAP, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th and general information at the company's website at www.gcapital.co.th and www.mai.or.th