Bangkok--24 Apr--Tirathai
Tirathai schedules IPO during April 26-28 at 5.75 baht
- No impact from politics
- Confident in revenue surge backlog order worth 955 million baht
Sumpan Vongphan, Managing Director of Tirathai Public Company Limited or TRT, the leading electrical transformer manufacturer said the company has planned to make the initial public offering of 30 million shares at the price of 5.75 baht per share from the par value of 2 baht during April 26-28, and commence trading on MAI on May 10, 2006. KGI Securities (Thailand) PLC is the financial advisor and lead underwriter.
In addition, there are 5 other sub-underwriters namely Ayudhaya Securities PLC, Bua Luang Securities PLC, Finansa Securities Limited, Seamico Securities PLC and Syrus Securities PLC join the syndication.
"The reason we plan to enter the stock market during this period is because we think the market starts to be more stable. At the same time, our performance continues to be positive with 30% growth projection this year. We are confident that TRT share will be quite outstanding in mai as it will be the first transformer manufacturing business to be traded on the Stock Exchange of Thailand. The present political situation has no impact on our business this year as electrical transformers are necessary equipment for the electrical system and the orders are planned in advance. We currently have about 80% secured job on hand. We expect the stock is attractive to both institute and retail investors", said Sumpan.
Sumpan said the total market value of domestic transformer market during 2006 is forecasted to be 5,300 million baht of which the power transformer market accounts for 1,300 million baht and the distribution transformer accounts for 4,000 million baht. The company gains about 20% domestic market share and is regarded as one of the leaders in this market. It has about 30% shares of power transformer market and 15% of distribution transformer market shares. At present, the company is considered as the only manufacturer in Thailand who can produce both power transformer and distribution transformer. While the remaining 2 power transformers is world class multinational firm, TRT is only Thai national manufacturer who can produce power transformers and share the market since the management has over 30 years of experience and expertise of its management.
The proceeds from this fund raising effort of about 172.5 baht of which 30 million baht will be used to increase its power transformer production capability from the existing capability whereas another 85 million baht will be used for repayment of long term debt which will reduce the interest payment. The rest of the fund will be used as the company's working capital.
For its performance during 2005, the company and its subsidiaries posted the total revenue from sales and services of 1,090.93 million baht up around 19% and reported the net profit of 77.34 million baht up around 398% from 2004. The company plans to expand its overseas market covering countries such as Vietnam, Brunei, Sri Lanka, India, Malaysia, etc. Currently, the company has secured the oversea order to be handed over within this year worth about 400 million baht.
Sampan added that the company projects the revenue growth of 30% this year. During January and February this year, the company has delivered 145.76 million baht worth of transformers. It has the jobs on hand that have not yet delivered of about 808.97 million baht. In addition, there are many projects under negotiation and bidding process.
Patchpon Sankaburanuruk, Senior Vice President, Investment Banking of KGI Securities (Thailand) PLC as the financial advisor and lead underwriter said the TRT IPO share price at 5.75 baht was based on the calculation of PE Ratio this year at about 6 times whose price range has appropriate discount level for the investors when compared to the PE Ratio of the stock traded in energy sector of around 10 times. The share is forecasted to gain a positive response from the investors.
Tirathai Public Company Limited was incorporated on August 20, 1987 with the initial registered capital of 4.2 million baht by a team of specialists and engineers in the field of transformer manufacturing from Siriwiwat (1972) to engage in the manufacturing and distribution of electrical transformers for industrial facilities and public enterprises such as Provincial Electricity Authority, Metropolitan Electricity Authority and Electricity Generating Authority of Thailand. The company has 3 affiliated companies with 99.9% stake namely Thai Fins Company Limited, HTT (Thailand) Company Limited and Tirathai E&S Company Limited.
For more information, please contact
Lakana Khwan-ngam (09-488-1777) and Sujira Wirojana (01-629-1821)
PR Consultant
Tel. 0 2953-8633, 0 2954-2476