Bangkok--Mar 22--Weber Shandwick
The price range for Sahamit’s IPO is set from 2.65-2.85 Baht. Sahamit is now ready to carry on the plan to build a new heat treatment center for special steel to fulfil the inceasing demand from the automotive industry , and expects to appoint its underwriters to offer its 90 million IPO shares in the near future.
Mr. Chaisilp Tamesirichai, President of Sahamit Machinery Public Company Limited, Thailand’s full-service importer and distributor of special steel for making all kinds of mould, machine tools, tooling and industrial machinery, said: “Our financial advisor, Globlex Advisory Co., Ltd., has conducted roadshows to introduce the company and to help gauge demand from institutional investors for Sahamit’s IPO shares, priced from 2.65-2.85 Baht per share through a book building process.”
Mr. Chaisilp, discussing the company’s business, said: “Our business is going to expand in order to serve the growth of Thailand’s automotive industry, by further investing in the special steel heat treatment center, which will allow Sahamit to offer a ‘one-stop service’ to the manufacturing sector and to add value to the company’s steel products. The center requires a total investment of approximately 130 million Baht. It will be constructed in the second quarter and be operational in the fourth quarter of this year, and reach full capacity in early 2006.”
“We are a leading full-service importer and distributor of special steel, machine tools, tooling and industrial machines, and have been serving Thailand’s major industrial sectors, such as the automotive and parts industry, electronics and electrical appliance industry, household product industry, as well as construction material industry, which includes nuts, screws, and bolts. In the automotive and parts industry, 49% of the operators are our clients, for instance, Thai Summit Group, IT forging. Co.,Ltd, Formula Automobile Co.,Ltd., and Sri Thai Group. We have implemented strategies to add value to our products, for example, providing cutting, milling, grinding and drilling special steel for making moulds with modern machines; or cutting and resurfacing paper according to our clients’ needs, thus creating, synergy’s in the company’s businesses and increasing revenue. Our strategies have helped to enhance our services, and will help future revenue growth. In 2004, Sahamit earned total revenue of 1,416.08 million, and net profit of 126.33 million Baht, up 190% from a year earlier,” Mr. Chaisilp concluded.
Mr.Vicha Tomana, Senior Executive Vice President, Investment Banking, Globlex Advisory, Financial Advisor to Sahamit said: “Globlex Advisory together with Sahamit executives presented the company’s IPO information to estimate the demand from institutional investors last week, and found that Sahamit IPO is very well-received. We expect to announce the final price as well as to appoint the underwriter in the near future. The 90 million shares at a par value of one Baht apiece to be offered through the IPO equal approximately 17% of the total paid-up registered capital. Sahamit aims to raise additional capital of around 250 million Baht, which will be deployed to build a heat treatment plant for special steel and to increase working capital.”
“Sahamit has shown continuous growth in line with the expansion of the industrial sector in Thailand. The government has instituted policies to help the Thai automotive industry become the “Detroit of Asia”. This has resulted in higher demand for special steels for making moulds (to produce automobile parts), machine tools, and other equipment. In 2004, the companies’ revenue from special steel, industrial machines, and machine tools equalled approx 81.5% of total revenue. It is anticipated that the automotive and parts industry will enjoy long term growth,” Mr. Vicha concluded.
Presently, Sahamit has 440 million Baht in paid-up registered capital. The par value of the 90 million shares to be offered through the IPO is set at one Baht per share. The major shareholders are Tamesirichai group (21%), Sritornratkul (20%), and Sivaruk (17%). After the IPO, Sahamit will have registered capital of 530 million Baht.
Note to editor: Sahamit Machinery Public Company Limited was established in 1973. The company imports and distributes six categories of industrial materials: (1) Special steel (2) Machine tools (3) Tooling (4) Pulp and paper (5) Machinery and equipment for wood processing (6) Electrical engineering. Sahamit is a full-service importer and distributor of special steel as well as industrial machinery to serve the local manufacturing sector, including the automotive and parts, electric and electronics, household ware, and construction materials, for instance, bolts, screws, and hinges. Serving all of Thailand’s major production sectors. Sahamit Machinery’s goal is to be the leading full-service importer and distributor of industrial products to Thailand’s high growth industrial sectors.
For more information, please contact:
Prangtip Sivaruk, Sahamit Machinery Public Company Limited
Tel: 02 295 1000 ext. 1515, E-mail: [email protected]
Tippawan Wortong/ Jensiree Esaparn
PR Consultant, Weber Shandwick Tel: 02 257-0300 ext. 334, 333,
E-mail: [email protected] / [email protected]
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