Bangkok--Jul 4--Kim Eng Securities (Thailand)
M.C.S. Steel Plc. will be offering 100 million new shares together with 25 million existing shares to the public during 5-7 July 2005. Lead Underwriter, Kim Eng Securities (Thailand) Plc., and Co-Lead Underwriter, Bualuang Securities Plc., have been appointed to distribute the shares along with 5 other leading underwriters namely DBS Vickers Securities (Thailand), TISCO Securities, Siam City Securities, Seamico Securities, and Capital Nomura Securities.
Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) Plc., as Lead Underwriter, highlighted that “M.C.S. Steel Plc. is a structure steel fabricators in the form of beams and column boxes and is among the leading manufacturers of such products in Thailand. Its manufacturing process is modern, meeting international standards and even surpassing JASS 6 (Japanese Architectural Standard Specification) which is a legally-required standard in Japan. Furthermore, the company holds “H” class fabricator status awarded by the Minister of Land, Infrastructure and Transportation of Japan to the fabricators who are eligible to export products to Japan.
The company currently intends to raise funding from the public and lists on the Stock Exchange of Thailand through a public offering comprising of 100 million new shares and 25 million existing shares, priced at 2.40 baht (par 1 baht). 48% will be allotted to local and foreign institutional investors and the remaining 52% to retail investors. Due to very strong institutional interest in subscribing to these shares, an additional 15 million shares will be made available through a Greenshoe Option which also lends additional stability to the share price when it starts trading. This capital increase should raise roughly 240 million baht which will facilitate future growth by funding the production expansion and the construction of port facilities. Subscription is set for 5-7 July 2005.
M.C.S. Steel’s past financial performance shows continued growth, underpinned by increases in manufacturing output. Sales revenue of fabricated steel products rose from 742 million baht in 2002 to 1.012 billion baht in 2003 and 1.505 billion baht in 2004. Net profit grew from 12 million baht in 2002 to 58 million baht in 2003 and 130 million baht in 2005, respectively. In the first quarter of this year, revenue was 568 million baht compared with 420 million baht in the corresponding quarter of 2004. This year’s first quarter net profit was 69 million baht, up from 29 million baht in the same period last year.
With excellent growth prospects and representing one of Thailand’s leading steel fabricators, M.C.S. Steel Plc. offers a solid investment choice to the investors and another quality listing on the SET.”
Dr. Naiyuan Chi, Chairman and Chief Executive Officer of M.C.S. Steel Plc. said “M.C.S. Steel Plc. is a structure steel fabricator of beams and columns utilizing special hot-rolled steel with exceptional material quality and the strength to withstand shocks and earthquakes. We sell to both local and export markets, especially Japan. Current production capacity is 40,000 tons per annum from our factory located in Bang Sai, Ayutthaya. The management has over 10 years experience in this field, hence has excellent long-term relations with both major Japanese suppliers of special hot-rolled steel and General Contractors, our major customers. Our products are made-to-order to our clients’ needs and we have the capabilities to offer a fully integrated range of services. Japan’s strict import standards are seen as beneficial to us as we are already able to surpass them. Few fabricators are able to meet these standards and local Japanese fabricators are disadvantaged by high production and operation costs.
Listing on the SET is a key step forward for the company in securing its foothold as a leading structure steel fabricators, enhancing Thailand’s profile, and raising the company’s capabilities in meeting client’s growing demands. Furthermore, access to lower cost funding will facilitate future growth prospects.”
At present, M.C.S. Steel Plc. has a registered capital of 500 million baht, of which 400 million baht is paid-up capital of 400 million shares at par 1 baht. The capital raising of 100 million shares and 25 million existing shares will be offered to the public between 5-7 July 2005 and are expected to begin trading on the SET on 15 July 2005 under the stock symbol “MCS”.
Corporate Communication Department / Tel: 02-658-6300 ext. 5180, 7401-7402 End.