Bangkok--4 Jun--SET
The Stock Exchange of Thailand (SET) welcomes Thai Agro Energy pcl, an ethanol producer and distributor, on its main board on June 5, under the ticker symbol "TAE".
SET Executive Vice President Chanitr Charnchainarong said that TAE would be listed in SET's Energy and Utilities sector on June 5, with a market capitalization at the initial public offering (IPO) price of THB 2 billion (approx. USD 60.6 million). TAE is a subsidiary of Lanna Resources pcl (LANNA) realized the potential growth in the alternative energy industry. The fundraising via the Thai stock market could strengthen its financial status.
TAE manufactures and distributes ethanol to be used for blending with gasoline to produce gasohol as an alternative fuel for automobiles. The main clients are the country’s fuel traders, such as PTT pcl, Bangchak Petroleum pcl and Esso (Thailand) pcl.
It has a paid-up registered capital of THB 1 billion, consisting of 800 million existing shares and 200 million newly-issued shares, with a par value of THB 1.00 each. The company offered 296.04 million new shares. Of these, 105.04 million shares were sold to shareholders of LANNA on May 21-23, and 191 million shares through an IPO during May 28-30 at THB 2.0 per share. Finansia Syrus Securities pcl is the company's financial advisor and lead underwriter.
Somchai Lovisuth, TAE’s CEO, said that being a SET-listed company is a significant step for the company to grow sustainably. The fund raised will be used to invest in gas engine plant for production of electricity used internally and working capital to support the company’s future expansions.
TAE's three major shareholders after the IPO are LANNA (51 percent), Sirirungsi family (5 percent), Siam City Cement pcl (SCCC) (4.72 percent). The IPO price had a price-to-earnings ratio (P/E) of 16.67 times, calculated by using its 2013 net profit, divided by the number of fully-diluted shares, representing earnings per share of THB 0.12. TAE's dividend policy is to pay no less than 60 percent of net profits after retained loss (if any) and reserves.
For more information on TAE, please find the company's prospectus on the Securities and Exchange Commission's website at www.sec.or.th and general information on the company's website at www.thaiagroenergy.com and www.set.or.th .