Bangkok--Dec 1--SET
Krungthai Car Rent and Lease Pcl. (KCAR) and Pre-Built Pcl. (PREB) will be listed in the Financials and Property & Construction industry groups, respectively, after having collectively raised about THB360 mln. to prepare for business expansion.
The Stock Exchange of Thailand (SET) approved the listings of Krungthai Car Rent and Lease Pcl. and Pre-Built Pcl. on the exchange.
Krungthai Car Rent and Lease Pcl.’s securities will be listed in the Financials Industry Group, Finance and Securities Sector, on December 1, 2005, using “KCAR” as their trading symbol.
Pre-Built Pcl.’s securities will be listed in the Property and Construction Industry Group, Property Development Sector, on the next day, using “PREB” as their trading symbol.
“KCAR and PRRB are leading companies that recognize business opportunities as well as the benefits of the capital market. They will not only gain by having lower fundraising costs, but will also save 5% on their normal tax rates for five accounting years. If the companies maximize these competitive edges, they will be interesting alternatives for people who’d like to grow with them and their industries,” Ms. Sopawadee Lertmanaschai, SET EVP said.
KCAR has THB250 mln. in paid-up capital. Its securities are comprised of an existing 200 mln. shares and an additional 50 mln. shares in capital increase, with a par value of THB1.00 each. During November 24 - 25, 2005, KCAR sold at its initial public offering (IPO) 50 mln. shares to the general public at THB4.40 per share. Seamico Securities Pcl. acted as its financial advisor. KCAR has raised approximately THB214 mln. net after expenses.
The IPO price of KCAR shares is approximately 6.18 times KCAR’s price-earnings (P/E) ratio, representing about a 31-36% discount from its industry’s average P/E.
KCAR’s main business is to provide car rental services. About 95% of its clients are medium- and large-scale corporations, multinational companies, government agencies and state enterprises. The company has raised funds to purchase new cars, as it plans to penetrate the market of short-term rental services for tourists and corporations. Another of its potential markets is long-term car rental for corporations which demand high-standard vehicle services to reduce operating expenses, and so will be likely to change from car purchasing to rental. KCAR’s dividend payment policy is to pay out no more than 60% of its net profits.
The principal shareholder of KCAR is the Chantarasereekul group, which holds 75.2% of the company’s paid-up capital after the IPO.
PREB has THB200 mln. in paid-up capital. Its securities are comprised of an existing 153 mln. shares and an additional 47 mln. shares in capital increase with a par value of THB1.00 each. During November 15 - 17, 2005, PREB sold at its IPO 47 mln. shares to the general public at THB3.25 per share. Advisory Services Co. Ltd. acted as its financial advisor. PREB has raised approximately THB144 mln. net after expenses. These funds will be used to purchase machinery and equipment for its construction business, provide financial assistance to its subsidiary, and provide more internal working capital. PREB’s dividend payment policy is to pay out no more than 50% of its net profits.
Aside from PREB’s capital increase shares, Asian Property Development Pcl. (AP), PREB’s principal shareholder, also sold its 19 mln. shares as well. Therefore the major shareholders of PREB after the IPO are the Charoentra group, AP, and Quest Capital group, which hold 27.4%, 24%, and 13.54% respectively.
The IPO price of KCAR shares is approximately 6.18 times PREB’s price-book value (P/BV) ratio. An average P/BV of construction companies of similar size is about 2.19 times.
PREB is a medium-size construction-contracting company using pre-cast technology in its projects. From 2001 — September 2005, approximately 50% of its projects were for AP. Presently PREB is in the process of bidding on two projects collectively worth THB992 mln..
For more information on Krungthai Car Rent and Lease Pcl. and Pre-Built Pcl., please visit www.krungthai.co.th, www.prebuilt.co.th, www.set.or.th, or www.settrade.com
For more information,
please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036
Kulvida Jintakawong Tel: 0-2229-2037
Nattaporn Boonprapa Tel: 0-2229-2049
Watsamon Saowakhonsathien End.