Bangkok--Oct 14--Unimit Engineering
Unimit Engineering plans to float 43 million IPO shares
Proceeds to be used for land and machinery purchase
Project 15% revenue growth over the next 3 years
Phaibul Chalermsaphayakorn, President of Unimit Engineering Plc, one of the business leaders in the engineering design, pressure vessel fabrication and commissioning for the factory production process said the company is under the SEC's approval process to make the initial public offering of 43 million share at the par value of 1 baht accounted for 30.07% of the registered capital after being listed in the Stock Exchange of Thailand. Out of 43 million shares, 40 million shares will be offered to the public whereas the remaining of 3 million shares will be offered to the company's employees. The company anticipates that it would be able to be listed in MAI within this November with KGI Securities (Thailand) Plc as its financial advisor.
At present, the company is the engineering design and pressure vessel fabrication specialist for LPG, CO2, Ammonia, etc with about 15% domestic market share. Moreover, the company is also the contracted manufacturer for machinery parts, steel structure, and chemical tank as well as providing mechanical installation services with customer base in the growing energy and petrochemical industry.
Phaibul said that the proceeds from this fund raising effort will be allocated for the land buying to expand the factory as well as buying more machines so as to accommodate the growing demand from the customers. It expects to allocate 50 million baht for the purchase of machine and equipment to reduce cost and increase the production efficiency, 110 million baht for land buying, 84 million baht to build the plant for steel structure and heat exchange and the remaining of the fund will be used for the erection of High Pressure Vessel plant to support the industrial growth especially the energy section. During June 2005, about 85.9% of the petrochemical products including gas, diesel, benzene and etc. production capacity had been used resulting in the plan to increase production capacity during 2005-2009 by all major players including Thai Oil, Bang Chak, PTT, PTTEP, etc.
As for the company performance, the core revenue derives from the production of pressure vessel which accounted for 50% of the total revenue whereas the revenues from other products and services vary each year according to the customers' order. In 2004, the company reported the total revenue of 891.43 million baht increased by 18% from 2003. It posted the net profit of 102.11 million baht up by 24.20% from 2003. During the 2nd quarter of 2005, it reported the total revenue of 645.22 million baht increased by 92.88% from the same period in 2004 and posted the net profit of 79.31 million baht up by 112.59% compared to the same period in 2004.
Phaibul added that the company projects 15% revenue growth within the next 3 years by utilizing the international standard production expertise and engineering technique so as to produce and deliver the quality product as required by customers on time. At the same time, the company plans to expand its customer base overseas by product design and production. In addition, the company also provides the contract production service of high pressure vessel, machinery parts and steel structure for leading contractors in England, USA and Japan, etc.
Unimit Engineering Public Company Limited was founded by a team of Thai investor and Taiwanese engineers on April 21, 1982 with the registered capital of 9 million baht. It started by involving in the engineering business by being the first plant in Thailand to do the designing and producing the LPG pressure vessel on OEM basis. The company's products can be divided into 5 groups namely pressure vessel, machinery parts, steel structure, chemical tank and mechanical installation.
For more information, please contact
Lakana Khwan-ngam , Sujira Wirojana
PR Consultant
Tel. 01-822-2363, 01-629-1821 End.