Market for Alternative Investment (mai) will list Utility Business Alliance pcl - an integrated operation and maintenance service provider for water management including consulting, design, construction and machinery installation to meet the demand of customers - on Dec 7 under the ticker symbol "UBA". The company has a market capitalization at its initial public offering (IPO) of THB 1.02 billion (approx. USD 28.63 million).
mai President Prapan Charoenprawatt said UBA will be listed and start trading on mai in the Services industry group.
UBA, owned by Nawarat Patanakarn pcl (NWR) and SiamEast Solutions pcl (SE), is Thailand's leader in the integrated water management services covering three main product groups namely wastewater treatment systems, drainage tunnels and tap water systems with two main services - engineering and equipment procurement, and operation and maintenance. UBA is the largest wastewater treatment company in Bangkok and the only company assigned to operate the Bangkok Metropolitan Administration's seven drainage tunnels worth a total of THB 4 billion and three additional projects worth totally THB 2.2 billion is in the pipeline.
In the first nine months of 2022, the revenue ratio of operation and maintenance services, and engineering and procurement services was 87:13. According to the breakdown by customer type, public sector accounted for 84 percent of the company's total revenue and private sector made up the remaining 16 percent.
UBA has a paid-up capital of THB 300 million, consisting of 430 million existing common shares and 170 million newly issued shares, with a par value of THB 0.50 each. It offered 25.5 million newly issued shares with pre-emptive rights to NWR and SE shareholders during November 23-25, 2022, 114.5 million shares to persons at the underwriters' discretion, 19.8 million shares to its patrons and 10.2 million shares to its directors, executives and employees during November 28-30, 2022, at THB 1.70 each, for a total of THB 289 million. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 15.73 times. The earning per share is equal to THB 0.11, which was calculated from the company's net profit of THB 64.83 million in the past four quarters (from October 1, 2021, to September 30, 2022), divided by fully diluted shares. Capital One Partners Co., Ltd. is the financial advisor and Globlex Securities Co., Ltd. is the lead underwriter.
UBA Chief Executive Officer Somchart Sanghitkul said that the company, with more than 20 years of its experiences in water management projects of all scales, has understanding and expertise in various services for public and private customers in numerous industries. The company has received internationally recognized ISO 9001, ISO 14001 and ISO 45001 certifications, boosting confidence in service quality and continuing to gain trust from customers. The proceeds arising from the fundraising will be used to repay loans from financial institutions and invest in information systems, improve machinery, conduct research and development of new products and services, and as working capital.
UBA's major shareholders after the IPO are NWR (43 percent) and SE (28.67 percent). The company's dividend policy is to pay at least 30 percent of net profit from its annual separate financial statements after tax and all legal reserves.
For more information on UBA, 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.uba.co.th and www.set.or.th.