Bangkok--24 Nov--Image Impact
Thailand’s first and only integrated logistics service provider, Eternity Grand Logistics Plc, received an overwhelming response from investors to its IPO, which closed yesterday. Analysts from appointed underwriters reported that investor interest in ETG shares was high due to the company’s sound fundamentals and potential growth of the logistics industry, which enjoys strong government support. The analysts forecast that ETG share price would trade between Baht 4.00 - 4.40 per share next year.
Mr. Yarnsak Manomaiphiboon, President of Bualuang Securities PCL, ETG’s lead underwriter commented, “Shares of ETG was set at a reasonably discounted price of Baht 3.40 per share for its IPO and coupled with the company’s proven expertise in the logistics business for over 30 years, good customer base and potential industry growth, received tremendous interest from investors during the subscription period, which ended yesterday”.
Eternity Grand Logistics Plc offered 25 million shares with a par value at Baht 1 each for its IPO, which is equivalent to 21.74 percent of the company’s fully paid up registered capital from November 20 - 21, 2006. ETG’s shares will commence trading on the Market for Alternative Investment (MAI) on November 29, 2006.
Mr. Poonsak Thiapirat, Managing Director of Eternity Grand Logistics Plc, revealed that 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”, Poonsak explained.
ETG has a reputable client list, which presently includes the Central Group, TOPS Supermarket, Tesco Lotus, Nestle, Shell, Bridgestone, and Kawasaki, and is poised to post a significant revenue growth for the 2006/2007 fiscal year. The total funds raised from the IPO 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 for working capital.
Analysts from three leading securities forecast that the price for ETG should trade between Baht 4.00 to Baht 4.40 per share during its first year of trading on MAI. Moreover, ETG has a policy of paying out dividends not less than 30% of its net profit, and shareholders, who recently subscribed to the IPO shares, will also be eligible to receive 2006 dividends.
The positive factors supporting ETG’s bright future stems from the government’s support of the logistics industry to save time and operating costs and the fact that many multi-national companies have chosen to outsource their local logistics service rather than operate it themselves. ETG has especially benefited from the outsourcing and becoming an integral part of the logistics systems of major companies. In addition, the increasing number of industrial products produced within the country has also resulted in a positive trend for the growth of Eternity Grand Logistics Plc in terms of revenue and performance. It is envisioned that efficient warehouse management and IT utilization used for distribution services as well as fees from warehouse rental and management services will help reduce ETG’s operating costs and, in turn, maximize its profits.
The new structure of ETG’s shareholders after the IPO will be as follows: 71.29% held by the Thiapairat family (diluted from 91.09% prior to the IPO), 4.18% (from 5.35%) by Mr. Pundit Mongkolgul and 2.79% (from 3.56%) by Mr. Chulapob Buranachanyakul, while the Board of Directors and employees will hold 1.74% and the general public 20% of the company’s equity.
Eternity Grand Logistics appointed Bualuang Securities PCL as the company’s lead underwriter, together with Asia Plus Securities Co., Ltd., Fareast Securities Co., Ltd., KGI Securities Co., Ltd. and Trinity Securities Co., Ltd. as co-underwriters for this IPO exercise.
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