Bangkok--Nov 22--Oasis Media
KCAR will be on Stock Exchange of Thailand trading under “Finance” with an IPO at BHT 4.40 per share on December 1, 2005. KCAR will be listed on SET and ready for booking on November 24-25, 2005. Its strength in a long-term car rental service to both government and private sectors has put KCAR to be on a forward trend with an expectation to expand its first quarter revenue up to 35% and a net profit growth of 21 %.
Pithep Chantarasereekul, Managing Director Krungthai Car Rent and Lease Public Company Limited, discloses that the company is ready to bring company shares to the public by registering its shares with the Stock Exchange of Thailand under “Finance” category. The plan is to trade the shares on December 1, 2005. Seamico Security Public Co., Ltd. is the financial advisor and lead underwriter. Initial public offering (IPO) is determined at BHT 4.40. The first share lot booking is totaled at 50 million shares (20% of total shares) and will be opened for public to book on November 24-25, 2005. Investors who are interested can buy shares through 7 including brokers namely Far East Security Co.,Ltd Kim Eng (Thailand) Public Co., Ltd, Globlek Security Co., Ltd., KGI (Thailand) Security Co., Ltd., Finanza Security Co., Ltd., and Intel Vision Security Co., Ltd.
The increase in capital investment is aimed at acquiring fund to invest in new rental car buying, to pay the loan to financial institution, to inject liquidity to the operation and to expand future business. KCAR has a registered capital of BHT 250 million with a par value of BHT 1 and paid capital recorded at BHT 200 million. Major shareholders of 75% shares already paid-in are from Chantarasereekul family.
“We are strongly convinced that the business potential for car rental business is still huge with an average annual growth of 15%. Our company focuses our strengths in the areas of service quality and wider range of service availability. At present KCAR possesses 3,200 cars for rent. Our primary client groups of 85% revenue generation ,which is from car rental business, are private companies. In the near future, KCAR believes that car rental business will still be growing in size because of outsourcing business trend. The trend also strengthens our revenue projection and will allow us to perform a better cost control.”
Pithep further adds that KCAR strength also lies in the fact that 90% of cars KCAR has for rent is based on operating lease between 1 to 3 years. Short-term lease accounts for only minor portion. As a result, steady stream of revenue can be assured from major clients such as TOT PLC, SME Bank. KCAR is an efficient organization where operational flow is quick and continuous, which results in a better car maintenance and quick quality service. Clients can be certain of a fast and reliable service. KCAR has been steadily growing as reflected in the financial performance as of October 31, 2005 where a total revenue was recorded at BHT 527 million, an increase form BHT 389 million or a 35.37 % increase over the same period last year. An accumulated net profit of BHT 129 in 2005 as opposed to BHT 106 in 2004, marked an increase of 21.63 % net profit increase.
hao Arunyawat, Managing Director Seamico Securities Public Company Limited, financial advisor and lead underwriter, expresses his pleasure, honor and conviction in undertaking the assignment. He adds that KCAR has a profitability ratio as high as 25-26% as compared to the industry average of 18%. A total asset value of BHT 1,700 million, a figure of more than 3,000 cars in the port, a top three player in the same business and a 178 ready-for-sale car figure have all contributed to the high-appealing position of KCAR. A potentially-unallocated accumulated net profit of BHT 189 million coupled with the highly experienced management team who possess forward-looking vision and proactive approach to market will undoubtedly lead KCAR to a high-fly position in SET where transparent management and good corporate governance are ensured.
n top of that, an IPO of BHT 4.40 is a reflection of 30-40% discount when taking P/E of industry standard into consideration. Seamico is strongly convinced that KCAR has offered a worthwhile investment opportunity to investors. The offer in the SET is another long-term investment opportunity given to the public.
KCAR has been continuously growing especially during the last three years. Its average revenue increase has a record high of 17% year on year and jumped to 22 % during the first nine month of 2005. A net profit of BHT 138 million during the nine months of 2005 and BHT 130 million in 2004 (25-26 % of total revenue) adds strengths to KCAR. KCAR records a strong financial status of a total asset valued at BHT 1734 million as of September 30, 2005. Total car asset value accounts for 88 % (BHT 1,526 million). Shareholder equity is amounted at BHT 414 million and unallocated net profit is presently BHT 189 million in value. Dividend is scheduled to be paid up to 60% of net profit after tax and legal reserve. KCAR has a good corporate governance and transparent management policies. More than 10-year experience of modern management in the same business also adds value to KCAR shares in SET.
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