Bangkok--Feb 16--124 Communications
Khon Kaen Sugar Industry Plc will be offering 280 million shares for its IPO to raise fund for investment in downstream integration business
Khon Kaen Sugar Industry Plc (KSL), a leading manufacturer of sugar and sugar related products will start trading its shares on the Stock Exchange of Thailand (SET) under symbol ‘KSL’ in the first week of March with Asia Plus Securities Plc appointed as its financial advisor and lead underwriter.
Mr Chamroon Chinthammit, President and CEO of KSL, said: “We have appointed Asia Plus Securities Plc our financial advisor and underwriter. The total number of shares in this issue is around 280 million shares at 1 baht par value with trading debut in the first week of March.”
“The IPO will give us a good opportunity to invest in our downstream integration business to maintain our green energy policy. We will therefore use the money raised to invest in new projects including Small Power Plant Project (SPP), Ethanol project and Fertilizer project. Apart from this, the balance will be used to finance business expansion through working capital,” Mr Chamroon explained.
Investment will be made in Khon Kaen Sugar Power Plant Co.,Ltd to convert bagasse, a useless by-product obtained from the sugar manufacturing process into electricity,. This project will produce a total of 30MW of electricity with 20MW to be sold to the Electricity Generating Authority (EGAT) and 5MW to be used by Khon Kaen Sugar Plant itself and the remaining 5 MW will be sold to other companies within the group. Estimated investment is 1000 million baht with expected annual revenue of around 400 million baht. The project is expected to commence operations around the end of 2005, Mr Chamroon said.
The second project is the production of ethanol, an alternative fuel, by Khon Kaen Alcohol Co.,Ltd. The construction is now 45% completed and production is expected in 3rd quarter of this year. The investment for this project will be around 300 million baht with expected revenue of around 380 million baht per year.
The third project is to produce fertilizer by converting waste products generated in the production of ethanol into value-added product. Estimated investment is 120.… million baht , Mr Chamroom said.
Khon Kaen Sugar Industry Plc’s financial statement for 2004 shows that the firm’s revenue of 6,006 million baht with net profit of 617 million baht, The company has 7,957 million baht in total assets; 1,565 million baht of total liability and 5,311 million baht equity.
“However, the main factors behind successful operation of this business and maintaining high standards today are the upholding of the highest manufacturing quality at four subsidiary sugar factories which produce raw sugar, highly polished sugar, white sugar and refined sugar. Moreover, the companies produce sugar by-products such as bagasses, filter mud and molasses,” Mr Chamroon explained.
After the IPO the shareholding structure of KSL will be adjusted as followed: KSL holding’s will drop from 38% to 32%; Chinthammit family’s holding will decrease from 25% to 20%; Chutimavoraphand family’s stake will drop from 6% to 5%; Thaemsirichai family’s holding will decrease from 4% to 3%; Rojanachotikul’s stake will decrease from 4% to 3%; and the stake of other shareholders will decrease from 23% to 18%.
“The company’s performance has been very good with the firm expanding continuously especially after all the sugar companies came under one management umbrella. Furthermore, companies not related to the sugar business were sold in order for the group to concentrate its focus on sugar and downstream business. Currently, the company has four sugar affiliates with the factories in three regions as follows: New Kwang Soon Lee Sugar Factory Co., Ltd in the east, New Krung Thai Sugar Factory Co., Ltd and Tamaka Sugar Industry Co., Ltd in the west; and Khon Kaen Sugar Industry Co., Ltd in the northeast,” Mr Chamroon said.
Additionally, Khon Kaen Sugar Industry Plc (KSL), which started business in 1995 with 60 million baht capital, has seen this rise to 1,600 million baht with the paid-up capital now standing at 1,270 million baht. In 2004, the company became a public company to prepare to list on the Stock Exchange of Thailand. It should be noted that all sugar factories of KSL group has obtained ISO 9001:2000 certificate for quality management systems and HACCP and SQF200 certificates for food security management system from SGS (Thailand).
For further information please contact:
Inthira Chionnom
M.L. Chatramanee Kasemsri
Sasikanang Srinuan
Duchanee Nualkeiw
Krongjai Saeng-ngern
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