Bangkok--13 Dec--SET
Demco PCL, a diversified electrical systems and telecommunication services company, will join Thailand’s Market for Alternative Investment (mai) on December 14, 2006.
The company’s securities will be traded on mai using “DEMCO” as their trading symbol, mai President Mr. Chanitr Charnchainarong said.
DEMCO has THB 210 million in paid-up capital, each share having a par value of THB 1.00. This is comprised of an existing 160 million shares and 50 million capital increase shares. At its initial public offering (IPO) on December 4 and 6, 2006, yhe firm sold 50 million shares to the public at THB 3.05 per share, and allocated 5 million warrants to the company’s directors, executives, and employees at THB 0.00. These warrants will be valid for two years for common share conversion at a ratio of 1:1. The exercise price is THB 1.00. Asia Plus Securities PCL acted as DEMCO’s financial advisor and underwriter.
The price offered to the public reflected a price/earnings (P/E) ratio of 5.62 (compared with mai’s average P/E of 8.76 as at November 27). DEMCO’s dividend payment policy is to pay no less than 40% of its net profit and legal reserves.
DEMCO designs, supplies, constructs and installs electrical systems, provides electrical and mechanical services, telecommunication tower services, and steel construction and manufacture. It also supplies equipment for distribution and transmission systems, and sub—stations (including generators, a wide range of electrical equipment and energy conservation systems).
In 2003, the company registered with the Department of Alternative Energy Development and Efficiency, and is currently involved in the government’s energy conservation project.
The firm plans to use the funds raised for working capital, debt servicing and machinery purchases.
After the IPO, the principal shareholders in the company are Ms. Praphee Puipunthavong’s and Mr. Pradej Kitti-itsaranon’s groups, who hold 32.77% and 17.06% of the company’s paid-up capital respectively.
For more information on DEMCO, please visit their corporate website at www.demco.co.th , mai’s website at www.mai.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