Bangkok--Dec 9--Kim Eng Securities (Thailand)
Interhides Public Company Limited (IHL) will offer its IPO shares total of 15 million shares to the public with subscription period between December 14-16, 2005. Proceeds from the IPO are estimated to be around Baht 274 million. The Company had appointed Kim Eng Securities Public Company Limited as a financial advisor and lead underwriter. Other 7 securities companies join syndication to ensure underwriting success.
Mr. Montree Sornpaisarn, Kim Eng’s Chief Executive Officer, appointed as a financial advisor and lead underwriter, announced that “Interhides is a leading second tier manufacturer of car seat leather for automotive industry. The Company’s production starts from tannery process using hides and transform such raw materials into finishing goods such as car seats. Beside car seat leather, the Company also offers sewing service for steering wheels, gear knobs, and others. The Company’s equipment and machinery is considered as one of the most technological advances among the leather car seat manufactures in Thailand. The Company aims to offer its IPO share and listed in the Stock Exchange of Thailand (SET) with the IPO price of Baht 18.25 and par of Baht 5. The newly issued shares total of 15 million shares will be allocated to institution of around 40% and local investors of around 60% with overwhelming demand from institutions. The estimated IPO proceed of Baht 274 million will be used for capacity expansion to support the future production demand of each carmakers.
The Company has a strong growth potential due to the leading position in second tier Original Equipment Manufacturer(OEM) suppliers and manufacturer of car seat leather for automotive industry. Moreover, management team and shareholders have more than 30 years long experience in tannery business. At the same time, the Company also gets strong support from large shareholders, Sumitomo Group (20% holding after IPO), in term of marketing and dealing with culture of Japanese carmakers.
For financial highlight, the Company is able to show strong performance with sale revenue growth of 37% and 46% in the year 2004 and 9M/2005 respectively. This stable growth is shadowed by the growth of car production in Thailand, which has more than 20% growth in the pass 3 consecutive years. Moreover, the Government is fully support the automotive industry and has a policy to push this sector to be called “Detroit of Asia”, as they realized the tendency and competitiveness of the country compared to the other’s in term of labor. Another reason to support the revenue growth is the changing customer behavior toward leather car seat due to the better quality and long life usage. Interhides’ sales revenue increases from Baht 471.09 million in 2546 to Baht 648.77 million in 2547 or increasing 37%. During 9M/2005, the sales revenue is equal to Baht 688.62 million or 46% increase from the same period of last year and the Company’s net profit shows Baht 94.08 million. Currently, the Company receives advance orders from many car models, which lead to the needs for capacity expansion plan.
Mr. Ongart Thumrongsakunvong, the Managing Director of Interhides, announced that the Company is the leading second tier supplier for car leather seat with capacity of more than 12 million square feet per year or 360,000 pieces per year. The Company’s products to be the first to received ISO/TS 16949:2002 from TUV Rheinland Group institution, Germany, a certificate that is well accepted by the automotive industry. By having the certificate, the Company is received much trust from most leading carmakers or more than 30 car models, such as Toyota, Honda, Nissan, Ford, Mitsubishi, Isuzu, Mazda, Subaru etc. For example, the Company is able to maintain high market share of more than 85% of Toyota in car leather seat produce in Thailand. To be listed in the SET will prove to be an important path for the Company future success. Thus, Listing will allow the Company to improve its operating efficiency and maintain leading position in the industry. At the same time, the Company will able to increase capacity and expand distribution channel to meet each customer’s future need. Financially, the Company expects to have lower cost of fund after listed and enable the Company to optimize its future capital structure.
Currently, Interhides Public Company Limited (IHL) has a total registered and paid up capital of Bath 300 million. A total registered capital consists of 60 million shares at par of Baht 5. The Company plans to offer 15 million shares during December 14-16, 2005 and expected to be listed within December 22, 2005 under code name “IHL”
Corporate Communication Department / TEL: 02-658-6300 EXT 5180,7401-3 End.