Bangkok--1 Oct--SET
Market for Alternative Investment (mai), under The Stock Exchange of Thailand (SET) group, will list Smart Concrete pcl on October 2, under the ticker symbol "SMART". The company has a market capitalization at its initial public offering (IPO) of THB 874 million (approx. USD 27 million).
mai President Prapan Charoenprawatt said SMART was a subsidiary of Chonburi Concrete Product pcl (CCP), a SET-listed company, with an aim to build financial strength and boost accessibility to funding source for its subsidiaries. Therefore, this spin-off would boost its business opportunity in the future.
Smart Concrete pcl is the manufacturer and distributor of lightweight concrete block under the brand “SMART BLOCK-YEN” for constructing of walls of both, low-rise and high-rise, including partitions for building with construction material stores and project-based as main clients. It has a paid-up registered capital of THB 460 million, consisting of 389.55 million existing common shares and 70.45 million newly-issued shares, with a par value of THB 1.00. It sold a total of 115 million shares, of which 46 million shares went to CCP’s shareholders on September 17-19, and 69 million shares to the general public via initial public offerings (IPOs) at THB 1.90 each during September 22-24. Asset Pro Management Co., Ltd. is its financial advisor and Capital Nomura Securities pcl is lead underwriter.
Pratheep Theepakornsukkasem, Smart Concrete pcl’s managing director, said that the fund raised would be used to invest in new machinery for production capacity expansion and new product development. This would meet higher demand of lightweight blocks market with tendency to grow continuously thanks to its remarkable features such as energy saving, convenience, easy application, reducing labor costs as a result.
SMART's three major shareholders after the IPOs are CCP group (75.00 percent), Theepakornsukkasem group (4.96 percent), and HSBC (Singapore) Nominees pte ltd (0.27 percent). The IPO price was equivalent to price per earnings ratio (P/E ratio) of 24.72 times, calculated by using the company's net profit in the past four quarters (July 1, 2013 – June 30, 2014) divided by fully diluted shares, representing earnings per share of THB 0.0769. SMART's dividend policy is to pay no less than 40 percent of net profits after taxes and reserves.
For more information on SMART, 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.smartblock.in.th and www.mai.or.th .