Bangkok--Jun 23--Kim Eng Securities
M.C.S. Steel Public Company Limited, the leading steel fabricating company in Thailand, has appointed Kim Eng Securities (Thailand) Plc. as a lead underwriter to prepare MCS to list in Stock Exchange of Thailand (SET) in order to serve its expansion.
M.C.S. Steel Public Company Limited is the steel fabricator, specialized in Beam and Column-Box, which is used in high-rise building construction both domestic and international. MCS is operated under the professional management with experience in the industry for more than 10 years. The Company prepares itself to be listed on the Stock Exchange of Thailand with objective to increase its production capacity, expand its customer base, and increase its competitive advantage. MCS has appointed Kim Eng as a lead underwriter and IFCT advisory as a financial advisor.
Dr. Naiyuan Chi, Chairman of the Board and Chief Executive Officer said, “MCS was founded in 1992. Currently, We are the leading steel fabricator especially in the structure steel for Beam and Column-Box, which have the more vibration resistant than reinforced concrete. These structure steels are necessary for large structure buildings such as office buildings, hotels and department stores. The main raw material is special hot rolled sheet, which is imported form Japan and Korea. MCS product standard is higher than JASS6 (Japanese Architectural Standard Specification), which is conformed to Japanese law requirement, and also received the “H” Class fabricator standard (approved by Ministry of Land, Infrastructure and Transportation of Japan). Moreover, MCS meets Thai industrial standard for Build-up “H” from Thai Industrial Standard Institute (TISI) and ISO9001:2000. The major customer of MCS is Kajima Corporation, which is one in the top five general contractors in Japan.
The trend of structure steel in Japan in the next few years tend to be stable at the level of 6-7 million tons per year. Since there are only limited players outside Japan who can meet Japanese standard requirements together with our cost advantage, these will be the opportunity for MCS to expand its business.
MCS targets to increase its production capacity to 50,000 tons per year in 2006 in order to serve the increasing demand from its customers and gain more cost competitive advantage.”
Mr. Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) Plc. as a lead underwriter, said, “ M.C.S. Steel Plc. is a leading steel fabricator for large structure construction such as high-rise buildings, power plants and bridges. The management has experience in the industry for more than 10 years. MCS has good relationship with the business partners and emphasizes on stable and sustainable growth policy. MCS has earned all the necessary standards required for exporting to Japan, which is well-known in high quality standards and being located in a highly risky area for earthquake. MCS started to export to Japan since 1997 and has a continuous growth since then. In last year, its sales revenue was more than Baht 1,500 million and more than 90% of the sales are export. That MCS decides to be listed in the Stock Exchange of Thailand will increase a quality company for our capital market. MCS is a company which capable to compete in the global market and brings in foreign currency to Thailand. Since MCS is one of a limited players outside Japan who capable to fabricate structure steel to meet Japanese standard, this makes it gain high trust, high volume of total orders in advance. MCS also has very efficient production process and strong financial structure. Its net profit in the last 3 years (2002-2004) are Baht 12, 58 and 130 million, respectively. We are confident in the management that MCS will be an attractive stock when offered to the public. The subscription date will be in July. The IPO size is 125 million shares and 15 million shares of Green Shoe Option.
Corporate Communication Department, Kim Eng Securities (Thailand) Plc.
Tel. 0-2658-6300ext. 5180, 7401-7402 End.