Bangkok--Oct 27--Idealist Communications
Porn Prom announces to float its IPO shares at 3.05 baht per share during November 1-2 raising fund to enhance its liquidity and become an international trading firm
Mr. Chamnarn Pornpilailuck, Managing Director of Porn Prom Metal Public Company Limited, the leading trading firm with over 20 years of experience in distributing the industrial and construction raw materials including brass and copper in sheet and coil, high carbon and stainless steel wire, aluminum and stainless steel in sheet and coil for industrial. On construction materials consist of copper tube and fittings, closed cell insulation, air duct for air conditioning system (HVAC), said the company plans to float its 40 million shares during the initial public offering at the price of 3.05 baht per share from the par value of 1 baht per share accounted for 25% of the registered capital after IPO. The 38.3 million shares will be offered for the general public subscription while the remaining 1.2 million shares will be offered to the company’s employee and board of directors during November 1-2. Syrus Securities Public Company Limited has been appointed as the financial advisor and lead underwriter.
Moreover, the company has also appointed 7 additional co-underwriters namely Seamico Securities PLC, Kim Eng Securities PLC, Globlex Securities PLC, TISCO Securities PLC, Capital Nomura Securities PLC, Far East Securities Company Limited and Finansa Securities Co., Ltd.
Chamnarn said the proceed from this fund raising of about 122 million baht will be allocated for the working capital to support the company expansion rapidly. The company aims to become the leading world-class trading firm handling the full range of metal products such as the trading firm in Japan which plays the important role to the industrial sector in term of raw material procurement, price and quality control and occasionally involving in the investment of related industrial leading to the sustainable industrial growth of wealthy developed countries.
The company plans to increase its range of products especially the industrial raw materials which involve high technology products. At the same time, the company plans to increase its distribution channel directing at the new customer base especially the overseas producers relocating here from Japan, Korean and Singapore etc looking for a reliable local supplier, said Chamnarn.
Chamnarn added that the company’s performance has grown rapidly. In 2003, the company posted the total income of 778.56 million baht with 21.13 million baht profit whereas during the first half of 2004, the company reported the total earning of 629.13 million baht accounted for 46.42% growth compared to the same period in 2003. It posted the net profit of 23.63 million baht or 48.26% growth from the same period last year. 83.14% of the total revenue or 519.75 million baht was derived from the sales of industrial raw materials while the remaining 105.39 million baht or
16.86% of the revenue was from the sales of construction materials. The company is confident that with its competency and efficiency as the trading firm offering full range of services with international quality standard, it would continue to grow its business stably and consistently.
Somphop Keerasunthonpong, President , Syrus Securities PLC as the lead underwriter, said the IPO price at 3.05 baht per share is considered as appropriate by market comparable method when considering the P/E ratio around 10.33 as well as the company’s fundamental factor and potential. However, as currently there is not any listed company with the same nature of business, therefore the P/E ratio was compared with the related industry considered from its customer base in various industries such as electrical appliance, electronic components, automobile and auto parts, construction materials, etc. The P/E of such industries during July to September 2004 stood between 9.25-12.63 times. We, Syrus Securities PLC, trust that Porn Prom Metal’s IPO shares will attract the investors’ interest as well as receive a good response.
For more information :
Khun Lakana Khwanngam and Khun Sujira Wirojana
Tel : 02-953-8633,01-629-1821
e-mail : wsujira@hotmail.com End.