Bangkok--21 May--BrandComm Consultants
TICON announces May 20 as first day trading of its TSRs (TICON-T2) on SET. The company also posts first quarter 2014 results with total revenue of 782 million Baht. Majority of revenue comes from sale of factories and warehouses to TICON Property Fund. Despite the prolonged political instability, TICON group’s business continues to grow steadily as planned.
Mr. Virapan Pulges, Managing Director of TICON Industrial Connection PCL., discloses, “The recent TICON Shareholders’ Meeting approved the issuance of up to 183,262,047 units of Transferable Subscription Rights (TSRs) aiming at raising approximately 2.7 billion Baht. The company has set the trading period of the TSRs from May 20 to 28, 2014. With tenor of 52 days, 1 unit of TSR conveys the right to purchase 1 ordinary share of the Company at the price of 15 Baht per share. TSRs Holders who wish to exercise their rights to subscribe for capital increased shares of the Company must notify their intentions to exercise their rights under the TSRs during June 12 - 26, 2014. The Company expected to raise approximately up to Baht 2.7 billion depending on the number of rights exercised by the TSR holders. The proceed will be used for the Company’s 2014 planned expansion in acquiring additional land and construction of factories and warehouses..
Mr. Virapan also reports the first quarter performance for the period ended March 31, 2014 with a net profit of 143.74 million Baht. Revenue totals 782 million Baht majority of which comes from sale of assets to property funds totaling 498 million Baht. Revenue from factories and warehouses rental totals 202 million Baht.
“Due to the prolonged political instability, foreign customers, especially the new investors who have never been to Thailand, delay their decision in relocating their manufacturing to Thailand. TICON has reduced factory expansion plan by approximately 20 percent for 2014. However, in long term we believe that foreign investors are still confident in the economic fundamentals of Thailand and will resume their investment when situation improves.” said Mr. Virapan.
Concerning the business direction of TICON Group in 2014, the company had reserved a budget of 8 billion Baht. Three billion Baht is allocated for more land purchase while Five billion Baht is allocated for project construction. The company has set target to increase factory and warehouse spaces by 350,000 sq. m. to serve industry expansion in the future.