Bangkok--29 Aug--SET
Rich Asia Steel PCL is about to be listed on The Stock Exchange of Thailand (SET). The company raised THB 225 million (at its initial public offering (IPO) price) for the purchase of machinery to expand its production capacity in response to market demand.
SET has approved the listing of the firm’s securities in the Construction Materials Sector, Property & Construction Industry Group. Trading will commence on August 31, 2006, with “RICH” as the securities symbol, SET Executive Vice President Mr. Vichate Tantiwanuch announced.
RICH has THB 500 million in paid-up capital, made up of an existing 400 million shares and 100 million shares in capital increase, each with a par value of THB 1.00. During August 21 — 23, RICH sold its capital increase shares at the IPO at THB 2.25 per share. Seamico Securities PCL acted as RICH’s financial advisor.
The IPO price of RICH was based on its annual performance (Q3/2005 — Q2/2006). The company’s price/earnings (P/E) ratio stood at 14.06, while that of the Construction Materials Sector, Property & Construction Industry Group, was 8.35.
RICH trades, produces and distributes steel, as both raw material and finished products. The company’s lines include structural steel, hot rolled steel coil and sheets, billet, and other goods. After the IPO, the company plans to spend THB 80 million on new machinery to increase its production capacity from 125,000 tons/year to 215,000 tons/year. This is to cope with demand principally from the domestic construction industry. Some funds will be allocated to repay short-term loans. RICH has a dividend payment policy of no less than 50% of its net profits after taxes and reserves.
After the IPO, the principal shareholders in RICH are Ms. Angkakarn Tantiviroon’s and Mr. Krit Deelokcharoen’s groups, which hold 57.19% and 17.81%, respectively.
For more information on Rich Asia Steel PCL, please visit its corporate website at www.richasiasteel.com , SET’s website at www.set.or.th , or SETTRADE.Com’s website at 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 Tel: 0-2229-2797