Bangkok--Apr 19--Siam PR. Consultant
Company to list 13.23 million shares on MAI with subscription date set to start on April 20
Siam2you has concluded the share price for the initial public offering (IPO) at 7.0 baht apiece for the 13.23 million designated shares. Brokers have estimated the share price at 9.75 — 11.30 baht apiece. Analysts believe that the IPO price calculated from PE ratio of only 7-8 times, compared with the high PE ratio of 16 times posted by companies within the communications sector. The subscription period of shares will be held during April 20-22. KGI Securities (Thailand) Public Company Limited is appointed lead underwriter with 4 other brokers to handle subscription. Siam2you is expected to debut on the Market for Alternative Investment (MAI) on May 4, 2005.
Mr. Niklas Stalberg, Chief Executive Officer of Siam2you Public Company Limited, one of the country’s leading operators in digital communications offering services to consumers through wireless communication and the Internet, disclosed that the company has reached a resolution on a proper IPO price of 7.0 baht apiece, which was only around 7-8 times in terms of PE ratio, while current PE ratio of the communications sector was around 16 times. “The price determined for the IPO is considered a big discount for investors as the company has already calculated the risk of market fluctuation. The proceeds from the IPO will be used in expanding the business starting middle of 2005 in order to boost profitability and further grow the company in the coming years. Sage Capital Limited has been appointed financial advisor to cover the listing procedures and KGI Securities (Thailand) Public Company Limited acting as lead underwriter for the IPO,” he said.
Siam2you has conservatively predicted to maintain growing performance in 2005 with projected revenue of 177 million baht or 46% rise over that of the previous year. Gross profit is expected about 79.55% with net profit predicted about 21.75%. Net profit will continue to grow in 2005 with service fees being adjusted in accordance to the launch of new wireless value added services which will increase the number of covered handsets in the market.
“Siam2you has a registered capital of 40.93 million baht, of which 30.70 million baht has been paid up. The company’s paid-up capital includes 30.70 million shares at 1 baht par value. The initial public offering will include 13,232,900 shares or 25% of the total registered capital. After the capital raising scheme, the company’s registered capital will be fully paid up. The proceeds are intended to help expand the business as well as customer base, while fueling research and development of new products and services. The money will also be used to improve internal IT system and working capital,” Niklas Stalberg further explained.
Mr. Supon Tien-iam-arnan, Senior Executive Vice President, Investment Banking of KGI Securities (Thailand) Public Company Limited, as lead underwriter for the IPO, said Siam2you stock would be offered to institutional investors at 3.9 million shares or 30 % of the subscription shares; while small investors would be able to subscribe to 9.33 million shares or 70% of the subscription shares. “The subscription will be held during April 20-22 this year. Siam2you is expected to make its debut on the Market for Alternative Investment or MAI on May 4, 2005,” he said.
Other underwriters for Siam2you IPO stock include:
- Bualuang Securities PLC.
- Capital Nomura Securities PLC.
- Finansa Securities Ltd.
- Seamico Securities PLC.
“As the lead underwriter of the stock for Siam2you Public Company Limited, we expect good response from investors since Siam2you is known to have solid financial status with debt to equity ratio after fund mobilization of below 0.1 time. The company also has a policy to pay out dividend by at least 50% of the net profit,” he explained.
Siam2you Public Company Limited announced that in 2004 it collected revenue from services worth 120.96 million baht, 44.95% increase over 83.4 million baht earned for the entire 2003. Net profit before one-time IPO expenses was recorded at 32.95 million baht or 37.75% higher than 23.92 million baht in 2003. Better performance was a result of additional value-added services that satisfied the needs of consumers and will cater to the modern lifestyles, which demand vast information and various entertainment contents beyond the ordinary use of mobile phones.” he said.
According to stock analysts from various brokers who are part of the group of underwriters, the price range of 9.75-11.30 baht per share with determined IPO price of 7.0 apiece is considered a major discount for interested investors. With satisfactory level of return, the stock deems lucrative. An analytical report from KGI Securities (Thailand) Public Company Limited points that the target price of Siam2You stock should be around 10.30 baht apiece. Other brokers such as Bualuang Securities PLC and Capital Nomura Securities PLC see stock price appropriate at 8.70-11.30 and 9.75 baht respectively.
About Siam2you
Siam2you Public Company Limited is a digital communications company that offers demand driven solutions based on wireless and Internet technologies to both consumers and consumer oriented corporations. Siam2you operates two divisions with the Wireless Division developing, aggregating, and distributing Wireless Value Added Services (VAS) under the Siam2you brand name to end consumers. The Siam2you Interactive Solutions Division is a gateway to consumer oriented corporations, offering customized Interactive consulting services and digital advertising solutions that enable communication with wireless and Internet users, and includes a Design & Development Business Unit and New Media Business Unit. For more information visit http://www.siam2you.net
For more information please contact:
Songkram Kingklang, Jatupon Siridech or Wichiitra Tungjerdjarad
Siam PR. Consultant Co., Ltd.
Tel. 0 2693 7835 — 8 ext. 39-41
Fax. 0 2693 6920 End.