Bangkok--16 Dec--SET Corporate Communications
Market for Alternative Investment (mai) will list Villa Kunalai pcl (KUN), a property developer with a focus on Nonthaburi province's Bang Bua Thong district, on December 17, under the ticker symbol "KUN," with a market capitalization at its initial public offering (IPO) of THB 660 million (approx. USD 19.76 million). mai President Prapan Charoenprawatt said that KUN would list and start trading on mai in Property & Construction industry group.
KUN and its subsidiary are low-rise residential property developer under the brand "Kunalai" focusing on Bangkok's north area in Bang Bua Thong district, Nonthaburi province. The selling price of KUN's residential projects ranges from THB 2–6 million. As of September 30, 2019, KUN's four projects worth a total of THB 1.32 billion were completed and sold out, and seven projects worth a combined THB 3.90 billion are being developed. In addition, there are two upcoming projects worth a total of THB 2.17 billion in the pipeline. The company's main customers are first jobbers, local residents who want to expand family living space and families who want to own second or third home.
KUN has a registered paid-up capital of THB 300 million, consisting of 450 million existing common shares and 150 million newly issued shares, with a par value of THB 0.50 each. It offered the entire newly issued shares, of which 122.18 million were allocated to persons under the underwriters' discretion, 22.5 million to benefactors, and 5.32 million to the company's and its subsidiary's executives and employees, through IPO at THB 1.10 each, for a total of THB 165 million during December 3 - 4 and 6, 2019.
The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 10.78 times, calculated by using the company's net profit in the past 12 months (October 1, 2018 - September 30, 2019) of THB 61.24 million, divided by fully diluted shares, representing earnings per share of THB 0.102. KUN has appointed S14 Advisory Co., Ltd. as its financial advisor and Asia Wealth Securities Co., Ltd. as the lead underwriter.
KUN Chief Executive Officer Praweerat Dheva-aksorn said that the company has experience and expertise in developing low-rise residential projects in Bang Bua Thong district, Nonthaburi province, for over 10 years, adhering to 4 real estate development principles: high-potential locations, beautiful houses in good community, professional teamwork and reasonable price. The company plans to expand projects to cover the north, east, south and west locations of Bangkok to step forward as a leader. The fund raised will be used to acquire land, develop new housing projects, repay short-term debt to financial institutions, and as working capital for future business expansion.
KUN's three major shareholders after IPO are Praweerat Dheva-aksorn's Group (36.13 percent), Dheva-aksorn's Group (20 percent) and Sangkawanich's Group (10 percent). KUN's dividend policy is to pay no less than 40 percent of net profit after corporate income tax, and legal reserves from the company's separate financial statement.
For more information on KUN, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit www.kunalai.co.th and www.set.or.th.