Bangkok--Jun 1--Kim Eng Securities (Thailand)
Shin Satellite PO garners investor interest 3.5 times greater than shares offered
PO should raise Bt 3,182 million from retail and institutional investors
For Immediate Release: REF. SSA 009/2005
This release contains 2 pages. If any are missing, please contact us for a complete copy.
Shin Satellite Public Company Limited (“SATTEL”), the leader in Satellite and Telecommunication business in Thailand, announced its Public Offering (PO) of 208 million new shares today. Following management’s approval on May 31, 2005, SATTEL received overwhelming attention from both retail and institutional investors. Investors demonstrated their confidence in the Company’s solid current business and bright future growth with the launch of the IPSTAR satellite announced for mid-July 2005.
Dr. Dumrong Kasemset, Chairman of the Executive Committee of Shin Satellite Public Company Limited, stated, “The Company has successfully conducted overnight bookbuilding in order to raise more than Baht 3,182 million from its PO to institutional and retail investors. The Company offered the 208 million new shares at Baht 15.30 per share. Institutional investors will be allocated 110 million shares with 98 million shares going to retail investors. The demand from institutional investors for the Company’s shares is overwhelming at 3.5 times the number offered. The PO was underwritten by SCB Securities Co., Ltd., financial advisor and lead underwriter, Kim Eng Securities (Thailand) PLC., lead underwriter, together with six other underwriters. The PO proceeds will be used to expand business related to IPSTAR, reserve funds for additional insurance expenses for the IPSTAR project, strengthen its capital structure by paying back some of its loans and for use as working capital.”
Mr. Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) PLC., said, “Kim Eng is very proud to be a part of this overnight PO deal for Shin Satellite Plc. Due to its strong potential to grow both existing and future businesses; the Company has received much attention from institutional investors. The subscription period for investors will be June 2, 3 and 6, 2005. The new ordinary shares are expected to trade around June 10, 2005. ”
M.L. Chayotid Kridakon, Managing Director of SCB Securities Co., Ltd, said, “After the overnight bookbuilding process commenced with a price range between Baht 15.00 — 15.30 per share, the final offering price for this PO was established at Baht 15.30 per share during overnight book building. The offering price has a 8.93% discount from the closing price of May 31, 2005 of Baht 16.80 per share. At this offering price, most institutional investors have shown overwhelming demand for up to 3.5 times the number of shares offered despite the volatile market situation.”
After the PO process, SATTEL will increase its paid-up capital from Baht 4,387 million to Baht 5,427 million. The total number of ordinary shares offered to the public accounted for 19% of the new amount of total paid up capital.
Currently, SATTEL operates three satellites including Thaicom 1, Thaicom 2, and Thaicom 3. Within July 2005, SATTEL plans to launch IPSTAR. Meanwhile, it is conducting a feasibility study to invest in Thaicom 5 in order to increase its transponder capacity. Besides the satellite business, the Company operates an Internet business through CS LoxInfo Public Company Limited (CSL). The Company has investments in the telephone business in Cambodia and Laos through a holding company and runs a printing business through Teleinfo Media Co., Ltd. In 2004, SATTEL had total revenue of Baht 5,567 million with net profit of Baht 856 million and total asset value equal to Baht 27,587 million. In the first quarter of 2005, SATTEL reported total revenue of Baht 1,284 million with net profit of Baht 201 million and total asset value equal to Baht 28,077 million.
Underwriters’ Contact:
Corporate communication department
Kim Eng Securities (Thailand) Plc.
Tel. 02-658-6300 Ext. 5180, 7401-2
SATTEL International Press Contact:
Mrs. Janaskorn Pongchabubnapa,
International Press and Investor Relations,
Shin Satellite Plc, 41/103 Rattanathibet Rd.,
Nonthaburi 11000, Thailand.
Tel. (66 2) 591-0736 to 49 Ext. 8495
Fax. (66 2) 591-0724, email: [email protected] End.