Bangkok--Dec 22--PR&Associates
Yarnapund, one of the largest auto parts manufacturers in Thailand, announced today that it has signed to firm underwrite its initial public offering (IPO) with 9 securities firms. Total offering is 40 million shares of which 37 million shares will be offered to institutional investors, retail investors, and promoters. An additional 3 million shares will be set aside for its employees.
Managing Director of Corporate Finance and Capital Markets at Sirus Securities PLC, Mr. Pongskorn Tiekthum, as Yarnapund’s financial advisor, stated that Yarnapund will be the first auto stock to trade on the SET Board in 2005. Auto industry is receiving the strongest interest among investors at this moment, considering feedbacks from the company’s roadshow, I am confident Yarnapund will receive overwhelming attention accordingly.
Yarnapund is going to trade at SET on January 13, 2005, having Syrus Securities PLC. and Sicco Securities PLC as lead underwriters. From its 40 million share issuance at 5 baht par, the company estimates raising 500-650 million baht fund.
“The new capital will be earmarked for lowering short-term debt incurred from the construction of a new factory and thus reduce future interest expenses. The debt repayment should contribute at least 20 million baht to the bottom line per year and strengthen the overall financial health of the company. Moreover it should also reduce the Gearing ratio from 2.4 to 1.5x. Some of the IPO funds will also be used as working capital for the upcoming mass production cycle of Toyota car parts”, commented by Mr. Samphan Phanpanit, Managing Director of Yarnapund PLC.
The IPO will be carried through 9 underwriters, led by Syrus Securities PLC. and Sicco Securities PLC.; while other co-underwriters includes DBS Vickers (Thailand), Phatra Securities, National Securities, Globlex Securities, Seamico Securities, BT Securities and SCB Securities in allocating shares to individuals and institutional investors at approximately 13-14 baht per share. The final share price will be determined by book building inquiries with institutional investors. The final results will be announced on December 20 by the Lead underwriters.
Yarnapund PLC is owned by the Punpanit Group and several financial institutions, including the Government Pension Fund; Thai Automotive Venture Capital Fund; AJF Asset Management Co., Ltd.; SCB Asset Management Co., Ltd.; and ING (Thailand) Asset Management Co., Ltd.
Yarnapund has been a leader in auto parts manufacturer in Thailand for more than 50 years. The main products include exhaust pipes, ABC pedals, and more than 1,600 of other pressed parts. Business lines covers a wide range of production including designing and manufacturing of auto parts for export, supplying directly to car manufacturers as OEM and selling products in replacement market as REM. Yarnapund PLC is the largest exhaust pipe manufacturer in Thailand, supplying the world’s leading car makers, such as Toyota, GM-Isuzu and Honda.
For those interested in purchasing shares of Yarnapund PLC, please contact your brokerage firm or underwriters for the prospectus and subscription form. Draft prospectus is currently available for download at the SEC website (www.sec.or.th).
For more information, please contact
Saofang Ekaluckrujee
Tel: 02-6518989 Ext. 334
E-mail: [email protected] End.