Bangkok--Feb 22--124 Communications
Khon Kaen Sugar Industry Plc (KSL), one of Thailand’s leading manufacturer of sugar and sugar related products, will start trading its 280 million IPO shares at the offering price of baht 4.30 per share to the public, while 10 million shares were kindly reserved for the company’s employees and sugar cane farmers at the same price as general public.
Mr. Chamroon Chinthammit, President and CEO of KSL said: “We have appointed Asia Plus Securities Plc our financial advisor and underwriter. The subscription period will be on 24-25 February 2005 while the shares will commence trading on the Monday of 7 March 2005.
“KSL’s underwriters are included:
Asia Plus Securities Plc. as financial advisor and lead underwriting.
The remaining co-underwriters include
Bualuang Securities Plc., Ltd.
BT Securities Co., Ltd.
Capital Nomura Securities Plc., Ltd.
Ayudhaya Securities Plc., Ltd.
Finansa Securities Co., Ltd.
National Finance Plc., Ltd.”
Mr. Chamroon further said “During 16-18 February, the company offered 10 million shares to the company’s employees and sugar cane farmers and have got very good response. Currently, there are around 8,000 — 9,000 sugar cane farmers in our contract. The proceeds from the IPO will be used to fund our downstream integration projects to maintain our green energy policy. Our new projects include Small Power Plant Project (SPP), Ethanol project and Fertilizer project. Apart from this, the balance will be reserved for working capital.”
“Power plant project will be engaged under a new company, Khon Kaen Sugar Power Plant Co., Ltd with registered capital of Bt 400 million where KSL holds 100% stake— the project will use bagasses, a by-product from sugar manufacturing process, to produce electricity. The new power plant 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 1,000 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 Ethanol project where the company has set up a wholly owned subsidiary, Khon Kaen Alcohol Co., Ltd. With registered capital of Bt 160 million to engage in the manufacturing of ethanol to be used in as fuel substitute in benzene 95 and 91. The plant will have a maunufacturing capacity of 85,000 litres per day or 30 million litres per annum. The project is expected to generate revenues around Bt 380 million per annum and will use molasses (sugar by-product as raw materials. The third project which will also be engaged under Khon Kaen Alcohol Co., Ltd. is the Fertilizer project where filer mud (another by-product of sugar manufacturing process) will be the main raw materials. The fertilizer project is expected to generate around Bt 80 million in revenues per year.
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. ” Mr Chamroon explained.
“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.
Dr. Udomsak Chakreyavanich, president of Asia Plus Securities Plc said “KSL will be the first sugar manufacturing group to be listed in the Stock Exchange of Thailand (SET). We are proud to be a part of KSL success and firmly believe that KSL will bring us positive feedback from all investors since the sugar industry directly involved millions of people including sugar cane farmer and is considered one of key industries in Thailand. The industry helps in bringing in foreign money into our country as Thailand is the Second Largest sugar exporter in the world.”
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. The company’s performance has been doing very well. The main factory is in Amphur Num phong, Khon Kaen and mainly the company producing raw sugar, highly polished sugar, white sugar and refined sugar. The KSL is currently considered as the fifth biggest sugar industry in Thailand. It should be also 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).
Today, 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.
For further information please contact:
Inthira Chionnom
M.L. Chatramanee Kasemsri
Sasikanang Srinuan
Duchanee Nualkeiw
Krongjai Saeng-ngern
124 Communications Co.,Ltd
Tel. 02-662-2266 End.