The Stock Exchange of Thailand (SET) will list Right Tunnelling PLC, a civil engineering, construction and geotechnical works operator, on November 12, under the ticker symbol "RT". The company has a market capitalization at its initial public offering (IPO) of THB 2.11 billion (approx. USD 67.69 million).
SET Senior Executive Vice President Manpong Senanarong said that RT would list and start trading on SET in the Property & Construction industry group, Construction Services sector.
RT's and its subsidiaries' businesses consist of construction services in civil engineering and geotechnical works cutting-edge expertise and technology. These include tunnel construction, rock blasting, non-blast drilling, mining development, exploration drilling, concrete structure, general civil and geological works. During the first six months of 2020, the company has generated the majority of revenue from 1) construction of tunnels and shaft works; and 2) pipe jacking construction & horizontal directional drilling, representing 59.90 percent and 11.32 percent of total revenue, respectively.
RT has a registered paid-up capital of 1.1 billion shares, consisting of 800 million existing common shares and 300 million newly issued shares, with a par value of THB 0.50 each. It offered the entire newly issued shares to the general public during November 3-5 at THB 1.92 each, for a total of THB 576 million. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 9.20 times, calculated by using the company's net profit in the past 4 quarters (July 1, 2019 - June 30, 2020) of THB 229.47 million, divided by fully diluted shares, representing earnings per share of THB 0.21. Asset Pro Management Co., Ltd. is its financial advisor and Phillip Securities (Thailand) pcl is the underwriter.
RT Chief Executive Officer Chawalit Tanomtin said that RT has provided the civil engineering and geotechnical works services for over 20 years under experienced management team and capable team of engineers with knowledge and expertise in the field of construction and geotechnical works. The company has gained clients' trust from both public and private sectors to conduct various construction projects. The company is committed to providing efficient and high quality services, offering construction excellence to meet customers' requirements regarding on-time delivery, reasonable price, and safety concern. The fund raised will be used to invest in the construction of new workshop and warehouse; machinery and equipment; computer systems, devices and software; and as working capital for future business expansion.
RT's dividend policy is to pay no less than 40 percent of net profit after legal and other types of reserves in compliance with the company's regulations in the company's separate financial statement. However, the company's dividend payout may be different from this policy subject to the company's performance, financial liquidity, other necessities and appropriateness in the future, as well as other factors.
RT's three major shareholders after the IPO are Chawalit Tanomtin (16.28 percent), Chanaporn Bray (8.23 percent), and Thanavut Kirinawin (5.64 percent).
For more information on RT, 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.rtco.co.th as well as www.set.or.th.