The Stock Exchange of Thailand (SET) will list Civil Engineering pcl, an engineering and construction company, on January 27, under the ticker symbol "CIVIL". The company has a market capitalization at its initial public offering (IPO) of THB 3.22 billion (approx. USD 97.66 million).
SET Senior Executive Vice President Manpong Senanarong said that CIVIL will list and start trading on SET in the Property & Construction industry group, Construction Services sector.
CIVIL operates three types of business: 1) horizontal construction projects, 2) sales of precast concrete components and other construction materials to support the construction projects of the affiliated companies, and 3) leases of buildings, machines and equipment used for construction. The company has been in the construction business for a long time with expertise in the construction of horizontal projects consisting of roads, railroads, airports, dams and reservoirs. Major customers are organizations with potential in public and private sectors. As of November 30, 2021, the company had a backlog of projects worth THB 16.81 billion and such revenues will be gradually recognized until 2024.
CIVIL has a registered paid-up capital of THB 700 million, consisting of 500 million existing common shares and 200 million newly issued shares, with a par value of THB 1 each. It offered the newly issued shares to the general public during January 19 - 21, 2022, at THB 4.6 each for a total of THB 920 million. The IPO price is equivalent to the price-to-earnings ratio (P/E ratio) of 16.8 times. The earnings per share is equal to THB 0.27 calculated from the company's net profit of THB 191.62 million in the past 12 months (from the fourth quarter of 2020 to the third quarter of 2021), divided by fully diluted shares. Bualuang Securities pcl is the financial advisor and the lead underwriter.
CIVIL Chief Executive Officer Piyadit Atsavasirisuk said that the listing is a major step forward which will help beef up the company's competitiveness, increase opportunities for business expansion and strengthen the capital base. The company plans to undertake more projects in the private sector to expand the income structure in addition to the projects from the government sector. The fundraising will be spent on the purchase of machinery and equipment debt repayment to financial institutions, and as working capital.
The company's dividend policy is to pay no less than 40 percent of net profit from its separate financial statement after corporate income tax and legal reserves. Its board of directors will weigh dividend payment mainly on the factors that benefit the shareholders and such payment must not have a significant impact on the normal operations of the company.
CIVIL's major shareholder after the IPO is Atsavasirisuk Holding Co., Ltd. (64.29 percent).
For more information on CIVIL, 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.civilengineering.co.th, as well as www.set.or.th.