Bangkok--26 Sep--SET
The Stock Exchange of Thailand (SET) will list S.Kijchai Enterprise pcl, a leading medium-density fiber board manufacturer and distributor, on September 26, under the ticker symbol "SKN". The company has a market capitalization at its initial public offering (IPO) of THB 5.88 billion (approx. USD 172.94 million).
SET Senior Executive Vice President Santi Kiranand said that SKN would list on SET in the Property & Construction industry, Construction Materials sector. The Company produces and distributes medium-density fiber board (MDF), a wood-based panel widely used in numerous purposes, especially in construction and interior decoration. Currently, the company has a production capacity of 240,000 cubic meters/year with a plan to add 260,000 cubic meters/year to the current amount.
SKN has a paid-up registered capital of THB 800 million, consisting of 600 million existing common shares and 200 million newly issued shares, with a par value of THB 1.00 each. It offered 85 million newly issued shares via public offering (the allocation based on underwriter's decision), 64 million shares to domestic institutional investors, 11 million shares to foreign institutional investors and 40 million shares to the company's benefactors and employees, at THB 7.35 each, for a total of THB 1.47 billion. Tisco Securities Co., Ltd is the financial advisor and underwriter.
SKN Managing Director Vichai Saengwongkij said that this listing would strengthen the company's capabilities. The fund raised would be used for debt repayment and as working capital, while expanding a new production line to serve the growing customer demand in line with the market growth and the company's goal to become a leading wood-based panel manufacturer and exporter.
SKN's three major shareholders after the IPO are S.Kijchai Group (52.50 percent), Sahakij Group (22.50 percent) and Deutsche Bank AG, London (1.00 percent). The IPO price was set by a book building process, equivalent to price-to-earnings ratio (P/E ratio) of 25.83 times calculated by using the company's net profit in the past four quarters (Q3/2016- Q2/2017)divided by fully diluted shares, representing earnings per share of THB 0.28. SKN's dividend policy is to pay no less than 40 percent of net profit from the company's financial statement after tax and legal reserves.
For more information on SKN, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visitwww.skn.co.th , as well as www.set.or.th .