Bangkok--Oct 26--Branded The Agency
Elated by overwhelming subscriptions from institutional investors
California WOW Xperience Public Company Limited (CAWOW) has announced the price of its initial public offering (IPO) shares, which is scheduled for public subscription during October 31 to November 1, 2006 at Baht 6. The company is expected to debut its share trading on the SET on November 8 under the Entertainment and Recreation category.
Mr. Eric Mark Levine, Chairman and Chief Executive Officer of California WOW Xperience Plc, said that 30 per cent of the Baht 300 million proceeds will be used for debt repayment while the remaining 70 per cent is planned for business expansion and working capital. By the end of 2005, the company plans to open the fourth branch at Major Ratchayothin and we plan to add two more branches by the first quarter of 2006 at Siam Paragon and Chaeng Wattana. We expect that at the end of 2005, the number of members at four branches will be around 48,000.
Dr. Kongkiat Opaswongkarn, Chief Executive Officer of Asia Plus Securities Plc - as the lead underwriter of the CAWOW’s shares, said if referring to the prospective 2006 earnings projected by analysts of the Syndicate Members, our IPO price determination reflects price to earning ratio of 7.8 times which is considered as appropriate as it represents a 40 per cent discount from the industry's P/E ratio. Demand of Institutional investor has now exceeded the number of shares allocated for institutional investors, at 30 per cent of all shares.
"This is the first time that a fitness centre will be listed on the stock exchange. We believe that with the outstanding competitiveness, high returns and continued expansion, CAWOW will be an attractive stock," he said.
Other share underwriters are Seamico Securities Plc., Kim Eng Securities (Thailand) Plc., Tisco Securities Co., Ltd. and Bualuang Securities Plc.
CAWOW, registered with a capital of Baht 200 million, was established in December 2000 with the first branch located in Silom and two more branches on Sukhumvit 23 and Pinklao, respectively. After the IPO whereby 25 per cent of shares will be sold to the public, the stake of a group of shareholders led by Mr. Levine will be 38.25 per cent while Major Cineplex Group's stake will be 36.75 per cent.
For more information, please contact:
Sukiet Kittitammachote
California WOW Xperience Plc.
Tel. 0-2632-1255
Uracha Jaktaranon
Pannita Chanratanakul
Branded The Agency Co.,Ltd.
Tel 0-2650-9090 End.