Bangkok--Jun 22--SET
Thai Steel Cable Plc. (TSC) will be ready to reap the rewards of the growth trend in the automotive industry after raising funds in a plan to expand its production capacity by spending THB395 mln. in its new plant. TSC will be listed in the Automotive Sector, Industrials Industry Group, and commence trading on June 23.
Executive Vice President of The Stock Exchange of Thailand (SET), Ms. Sopawadee Lertmanaschai, announced that the SET Board of Governors has approved the listing of Thai Steel Cable Pcl.’s common shares on the Exchange. Its securities will be listed in the Automotive Sector of the Industrials Industry Group and commence their trading from June 23, 2005, onwards using “TSC” as their trading symbol. TSC will become the 5th new listing in the Automotive Sector this year.
“Due to the continual expansion of the automotive industry and the Thai government’s plans to make Thailand the ‘Detroit of Asia’ or the regional hub for automobile production, the world’s leading automakers (cars and motorcycles) have relocated to Thailand. This has made TSC a leading automobile parts producer with the largest market share in control cable products for automobiles and motorcycles. During the past 3 years, TSC has enjoyed a greater than 270% average rate of profit growth. For this reason TSC should be another interesting company for investors,” Ms. Sopawadee said.
TSC is in the family of the Summit Auto Group, Thailand’s largest automobile parts producer. TSC produces control cables and window regulator products for automobile and motorcycle manufacturers, as well as spare parts for retail stores both domestically and abroad. Its products are made under the “TSC”, “TSK”, and “HI-LEK” trademarks.
In 2004, TSC had a 98% market share of all control cables made for motorcycles and a 76% share of the control cable market for automobiles in Thailand. As for its window regulator product, TSC had a 36% share in the market for automobiles. Almost all of TSC’s products are produced and sold in the domestic market. Its major customers include Isuzu, Honda, Toyota, Mitsubishi, Yamaha, Suzuki, and Kawasaki.
TSC has THB259.8 mln. in paid-up capital. This consists of 201.5 mln. existing shares and 58.3 mln. capital-increase shares, each with a par value of THB1.00. During June 15 — 16, 2005, the company sold all of its capital increase shares at its initial public offering (IPO) at THB9.20 per share, raising approximately THB536.36 mln. SCB Securities acts as its financial advisor. The company’s IPO price is equal to 9.32 time its price-earnings (P/E) ratio, or about a 14% discount from the industry’s P/E ratio of 10.63 times. Also, its final IPO price was derived from the surveying of the demand, or book-building, among institutional investors to set the price ranging between THB8.70 — 9.20 per share.
TSC plans to expand its production capacity as well as relocate its production base to Amata Nakorn Industrial Estate, Chonburi Province. The company will spend THB395 mln. proceeds from fundraising on the relocation and production capacity increase while the remaining will be used to service its debts and used as working capital.
After its IPO, TSC’s three principal shareholders are the Jurangkool Family, Nippon Cable System Inc., and the Patanatmarueng Family, who hold 32.14%, 26.94%, and 11.28% of TSC’s paid-up capital respectively. Concerning the company’s dividend payment policy, it’ll pay out no less than 25% of its net profits after reserves.
For more information on Thai Steel Cable Pcl., please browse the company’s website at www.thaisteelcable.com, the SET’s website at www.set.or.th, or SETTRADE.Com’s website at www.settrade.com
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