Market for Alternative Investment (mai) will list President Automobile Industries PLC, a replacement automotive air conditioning spare parts manufacturer, on March 22, under the ticker symbol "PACO". The company has a market capitalization at its initial public offering (IPO) of THB 1.4 billion (approx. USD 45.32 million).
mai President Prapan Charoenprawatt said that PACO would list and start trading on mai in the Industrials industry group.
PACO manufactures and distributes replacement automotive air conditioning spare parts, serving customers in both domestic and overseas markets. Under "PACO" trademark, more than 2,600 models of the company's two main products namely condenser and evaporator are compatible with various automotive brands. In 2020, domestic sales accounted for 46.6 percent while the remaining 53.4 percent were exported to Asia, North and South America, Europe, and Australia.
PACO has a registered paid-up capital of THB 500 million, consisting of 740 million existing common shares and 260 million newly issued shares, with a par value of THB 0.50 each. The newly issued shares were sold via IPO with up to 195 million shares to general public via, up to 39 million shares to the company's patrons, and up to 26 million shares to PACO's directors, executives, and employees, during March 10 - 12 at THB 1.40 each, for a total of THB 364 million. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 18.42 times. The earnings per share is equal to THB 0.076, calculated from the company's net profit over the past 12 months (from January 1, 2020 to December 31, 2020) totaling THB 76.86 million, divided by fully diluted shares. Kingsford Securities pcl is its financial advisor and lead underwriter.
PACO Chief Executive Officer Somchai Lertkajornkitti said that PACO focuses on developing technology and continuously upgrading the standard of production process, such as the increasing use of robotic and automation systems in the production process, enhancing products to meet international standards and to be more diverse to respond to customers' different needs. The fund raised will be used for loan repayment to financial institutions, investment in warehouse construction project, and relocation of distribution center. It will also be used to set up subsidiaries for distribution purpose, expand business to Malaysia, and as working capital.
PACO's main shareholder after the IPO is Lertkajornkitti Family (74 percent). Its dividend policy is to pay no less than 40 percent of net profit from the company's separate financial statement after corporate income tax, and all types of reserves in compliance with the laws and regulations as specified by law and the company's articles of association.
For more information on PACO, 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.paco.co.th, as well as www.set.or.th.