Bangkok--16 Nov--Image Impact
Eternity Grand Logistics Plc or ETG will make history in becoming the first Thai logistics company to be listed on the Market for Alternative Investment (MAI) on November 29, 2006.
Mr. Poonsak Thiapairat, Managing Director of Eternity Grand Logistics Plc, the first Thai integrated logistics company to be listed on MAI, revealed that ETG has allocated 25 million shares, equivalent to 21.74 percent of the fully paid up registered capital, for its IPO. ETG will offer 7 million shares to institutional investors, 4 million shares to its supporters, employees and its subsidiaries, and 14 million shares to the general public.
The Company expects its revenue to increase by 30 - 40% in 2006 compared to the previous year with a net profit of Baht 48 million. Although its gross profit is expected to be at approximately 20 - 25%, the company’s financial performance is subject to the volatile oil prices, which accounts for 25% of ETG’s operating cost even though the company does foresee a downward trend in the future price of oil.
“Thailand’s logistics industry has tremendous growth potential as many multi-national companies are choosing to outsource their logistic requirements rather than undertaking them themselves in order to reduce their operating costs. ETG, Thailand’s only integrated and comprehensive local logistics company, hopes that being listed on the MAI will enable it to increase its competitiveness in the near future. In fact, ETG aims to fulfill its vision of being ‘the leading logistics company in the region’ — that is the Indo-china region -- within the next 3 years. In so doing, we plan to provide high quality logistics services, such as, custom clearance, transportation and distribution, and warehouse management by utilizing effective warehouse space design and innovative logistics service models, which will not only help lower our operating costs, but also enhance our space management efficiency”, said Mr. Poonsak.
ETG today formally appointed Bualuang Securities PCL as the company’s lead underwriter together with 4 other co-underwriters, namely: Asia Plus Securities Co., Ltd., Fareast Securities Co., Ltd., KGI Securities Co., Ltd. and Trinity Securities Co., Ltd. From the total funds raised from the IPO, Baht 84.32 million will be used to expand the company’s facilities such as, doubling its warehouse facilities to 10,000 sq.m. to accommodate future clients, expanding its container and truck parking space from 10 rai to 20 rai and improving the company’s software system. The remaining amount will be used as working capital.
Mr. Yarnsak Manomaiphiboon, Managing Director of Bualuang Securities Plc, revealed that the company’s IPO share price would be set at Baht 3.40 per share and the subscription period for the general public would be during November 20 - 21, 2006. The first day trading on MAI would be on November 29, 2006.
“We have received excellent feedback from recent institutional investor road shows, and several funds have already expressed their interest in ETG shares. I believe that this is the result of Eternity Grand Logistics’ expertise and sound business performance over the past 30 years coupled with the company’s competitive edge and the potential growth of the logistics industry in Thailand as it is supported by the government”.
“Bualuang Securities has set a 15 - 20% discount IPO price for investors to provide them with a good return on their investment. In fact, ETG’s 2006 P/E ratio is 1:8, and 2007 P/E ratio is 1:6 while the average P/E of MAI-listed companies is approximately 1:10. Moreover, ETG has a policy of paying out dividends not less than 30% of its net profit so investors subscribing to ETG’s IPO will also be eligible for this year’s dividends”, commented Mr. Yarnsak.
For further information, please contact Eternity Grand Logistics Plc
Khun Nattawee Wattanakornkitcharoen
Tel: 0-2315-7462
Fax: 0-2315-7300
or
Image Impact Ltd.
Khun Chutinun Guna-Tilaka ext. 118
Khun Piyapatr Suriyasak ext. 107
Tel: 0-2253-6809 - 12
Fax: 0-2253-6805