Bangkok--Sep 23--Siam PR Consultant
Eastern Wire floats 32 million new shares through public offering with free warrants at 4:1 ratio to existing, new shareholders
Proceeds to fuel new business investments, purchasing of machinery for greater production capacity
Eastern Wire Public Company Limited announces the change of par value from 10 baht to 5 baht, while boosting its registered capital to 625 million baht through a public offering (PO) of 32 million new shares and 25 million units of warrants at a ratio of 4 new shares to 1 warrant. The public offering is expected within the 4th quarter of 2004. The proceeds will also be used to fuel new business investment, purchasing of machinery for expanded production capacity and as working capital in new companies and subsidiaries.
Pirom Priyawat, Managing Director of Eastern Wire Public Company Limited or EWC, manufacturer and distributor of Prestressed Concrete Single Wire (PC-Wire) and Prestressed Concrete Strands (PC-Strand) - products used in construction; Tyre Bead Wire - a product used in the automobile industry - and Welding Wire used in the welding industry, disclosed that during the board meeting 8/2004 dated September 23, 2004, a resolution was reached to reduce the par value of the company’s stock from 10 baht to 5 baht, while raising registered capital from 340 million baht to 625 million baht through public offering of 32 million new shares (at 5 baht par value). The remaining 25 million remaining new shares are set aside for warrant exercise. “The shares will be sold at 15-25% lower than the average stock price closed 60 days prior to the public offering. The proceeds will be used primarily to fuel business expansion and investments in new business with potential. The remainder will be for purchase of new machinery and expansion of production capacity at Rayong Wire Industry - EWC’s subsidiary — and as working capital within subsidiaries and new companies,” he said.
“In order to attract investors and general public, the board of directors has also approved issuance of warrant (EWC-W1). 25 million units of warrant will be offered to general public and existing shareholders, of which 8 million units are set aside for new buyers with a ratio of 4 new shares to 1 warrant. The remaining 17 million units will be for existing shareholders distributed at the same ration — 4 shares to 1 warrant. The right exercise period of the warrant is 5 years, while 1 warrant is entitled to 1 share. The board of directors will further determine the share price appropriate for the right exercise,” he explained.
Eastern Wire Public Company Limited functions as a holding company, with an affiliated company being the Rayong Wire Industries Co., Ltd. (RWI), which engages in the business of manufacturing Prestressed Concrete Single Wire (PC-Wire), a product used for making piles (for foundation works), Electricity Poles, Steel-reinforced Concrete Floors, Prestressed Concrete Strands (PC-Strand), a product used on large construction projects, i.e., Bridge Beams, Large Piles, Tyre Bead Wire, a product used in the automobile industry and Welding Wire used in the welding industry. The company has a policy and plan to invest in lucrative industries pertaining to construction materials in order to strengthen its comprehensive operation, while looking to further invest in other lucrative businesses, whose potential coincides with the economic and social conditions, in order to even out the risks, apart from generating more revenues. Nevertheless, the management’s biggest concern is the return going to the company’s shareholders.
Marketing strategies used for every product manufactured by RWI are as follows;
1. Meeting the ISO 9001: 2000 Standard Certification, Industrial Standard Certification imposed by the Ministry of Industry and other internationally recognized standards namely ASTM, BS and AS to assure highest product quality.
2. Seeking new businesses.
3. Manufacturing and distributing variety of products, while remaining the sold manufacturer of Tyre Bead Wire in Thailand with over 10 years of experience.
4. Setting prices competitive to that of other producers in order to maintain customers and market share.
5. Concentrating on after-sales services with equipment testing and consulting in attempt to improve the operation for greater customer satisfaction in both products and services.
6. Increasing production capacity of Welding Wire through investment in new machinery
For more information please contact
Jidapa Pramualsub, Prakasit Nunpor
Siam PR Consultant Co., Ltd.
Tel. 0-2693-7835-8 ext32, 33, 0-1817-7153, 0-6339-0404
Fax 0-2276-8552, 0-2693-6920 End.
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