Bangkok--4 Jun--Penettrate
Institutional investors show overwhelming demands; book-building exceeds by 4 times
Strong Earning with 124% Profit Growth with 30% discount plus Interim Dividends
Toyo-Thai Corporation Plc., Thailand’s Largest EPC contractor offers its IPO share at 4.25 baht each. Stock will be ready for booking from June 9th -11th while company executives and underwriters believe it to be a big hit.
Mr. Hironobu Iriya, President and Chief Executive Officer of Toyo-Thai Corporation Plc., reveals that the company is ready to offer its 130 million common shares @ 4.25 baht per share to investors during its initial public offering. The shares can be reserved through a group of appointed underwriters led by Tisco Securities, the country’s leading financial advisor and brokerage firm. With a strong revenues and earning growth averaging 48% per year in the past 4 years, and a huge 98% growth of revenue in Q1 this year, totaling 4,068.34 million baht, the company also reported a 53% Profit jump to 140.08 million baht this year, from 91.07 million baht in same quarter last year.”
Meanwhille, Khun Paiboon Nalinthrantkurn, Chief Executive Officer of Tisco Securities Co., Ltd.-the lead underwriter and financial advisor, is confident that TTCL IPO shares will be in high demand. “Priced at 4.25 baht with a Price/ Earning Ratio (PE) of 6.5 times, compared with other general contractor stocks trading at over 10 times PE, the stock is very attractive. The book-building from institutional investors exceeds the originally-planned allocation by 4 times. And we expect to see the same level of high demand from retail investors when the retail booking starts on June 9th and finishes on June 11th. TTCL shares can be booked at Tisco Securities as well as at other leading underwriters including KGI Securities (Thailand), Kim Eng Securities (Thailand), Capital Nomura Securities (Thailand) Plc. and SCB Securities.
With excellent company business results and continued growth, TTCL share is the ideal First IPO for Thailand Stock Exchange this year. It has the highest ROE ratio in the contractor sector of 46% in 2008. And within the first quarter this year, the company already achieved an Earning per share of 0.43 baht. The company is a clear leader in the profitable EPC contractor business with large customer base and excellent business results proven success over 24 years of operation. It has solid financial status with 4,000 baht in cash and short-term investment and has no interest-bearing debt.”
Suvit Manomaiyanon, Toyo-Thai Corporation Plc.’s Director and General Manager, Sales and Contract Division says that “With strong cash flow and continued growth, TTCL wants to thank you the investors by paying an interim dividends of 0.15 baht per share from the first 6 months operation result this year. All investors including those purchasing the IPO shares with registration on company book on august 31st, 2009 will be entitled to this dividend payout.
In addition, the company also launches the silent period project in which its main shareholders consisting of Toyo Engineering Corporation, Italian Thai Group, Management Team and Manager-level employees has their 293,462,000 shares locked up to 1 year. They can sell one-fourth of their shares only after 6 months. When combining with 30,000,000 shares offered to company directors and employees in February this year which are fully locked up for 1 year, the total stocks with silent period reach a high 67.39% of overall issued stocks, a much higher rate than 55% required by the SET. This should provide additional stability to TTCL share prices” Khun Suvit suggests.
Recently, the company has won 4 new EPC contracts with combined value over 2,000 million baht. The projects from PTT group, Japan-based Ube Group and Asahi Chemical Group and Bio Natural Energy, pushes its backlog to over 9,300 million baht. Most of which, the company will realize this year and next year. Therefore, this year revenues should be close to that of 11,049 million baht last year with recorded a spectacular 141% growth. Net profit should be close to that of 314 million baht last year, which grew 124% from 2007. Blessed with 4,000 million worth of cash and no debt, the company plans to bid many large projects with combined value of 32,000 million baht.
Founded in 1985, by Toyo Engineering (JAPAN), a leading Japanese EPC Contractor and Italian-Thai Development Plc., Thailand’s largest general contractor, Toyo-Thai Corporation Plc. has a registered capital of 480 million baht; with paid-up of 350 million baht. The company now employs the largest numbers of engineers in Thailand; 817 engineers from a total headcount of 1,563 persons. The company’s track records cover over 160 projects in 24 years, with combined project value of 60,000 million baht. Its local customers include many large listed conglomerates such as PTT Group, SCG Group, Vinythai Group, Kao Group from Japan and German’s Bayer Group. Its international projects for the last 12 years generated a combined 6,000 million baht. Its main markets are Vietnam, where it has an operating subsidiary, China, Asian Countries, Middle East Countries, Africa and USA.
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