Bangkok--28 Jul--IR network
IFS Capital (Thailand) Public Company Limited (IFS) has set its IPO price at 1.35 baht per share and will open for share subscription from 30th July to 3rd August 2010. IFS’ shares are expected to make its debut on the Stock Exchange of Thailand on 10th August. The company is confident of a good response from investors as its fundamentals are strong with potential for further growth, and with strong support from its Singapore parent company, IFS Capital Limited.
Mr Tan Ley Yen, CEO of IFS Capital (Thailand), said that IFS will float its initial public offering (IPO) shares totalling 120 million shares to the public at the price of 1.35 baht per share. The shares will be opened for subscription from 30th July to 3rd August and are expected to start trading on SET's “Finance & Securities” section on 10th August under the symbol “IFS''.
The Company has appointed KT Zmico Securities as a Lead Underwriter and Book Runner and Phillip Securities (Thailand) as co-lead underwriters and four other sub-underwriters, including Finansia Syrus Securities, Globex Securities, IV Global Securities and Siam City Securities, to distribute its shares to the public.
"We are confident that all 120 million IPO shares of IFS will be fully subscribed as IFS has a solid track record of profitability, strong growth potential and a dedicated team of employees. Moreover, our major shareholder, IFS Capital Limited is ready to support the Company to move forward in every aspect in the future,'' Mr Tan said. "One of the attractions of IFS is its commitment to pay attractive dividends to shareholders every year," Mr Tan added.
Mr. Tan said that the funds raised from IPO will be used to expand its factoring and leasing businesses and as working capital for the Company. IFS is confident in the fundamentals and potential of the Thai Economy which will help the Company to achieve its growth potential in the future. So, this is a good opportunity for IFS to raise funds to expand its business and to strengthen its financial status.
Mr Kumpon Suangburanakul Senior Vice President of Investment Banking at KT Zmico Securities, the financial adviser, lead underwriter and book runner of IFS, said the IPO price of 1.35 baht is attractive for investors, given the low P/E ratio and the Company's good track record of performance.
"This year, there are only a few companies listing on the SET and IFS is one of them. IFS receives very good feedback from the investors as the Company has a strong track record of performance in 2007, 2008 and 2009 with net profits of 50.48 million baht, 71.13 million baht, and 71.29 million baht, respectively. During the first quarter of this year, it posted a net profit of 21.81million baht, a increase of 15.64% from 1st quarter of 2009 and has been paying attractive dividends over the past years. We are confident that IFS will give good return to investors,'' Mr Kumpon said.
Mr Vicha Tohmana (pls check name), the head of investment banking at Phillip Securities (Thailand), the co-lead underwriter, said IFS Capital (Thailand) is a member of IFS Capital Limited, which is listed on the Singapore Exchange and a regional financial services group based in Singapore. IFS Capital Limited is headquartered in Singapore with operations in Malaysia, Indonesia, Singapore and Thailand. “With the strong fundamentals of IFS and the attractive IPO price, we are confident that the IPO shares of IFS will receive good response from the investors,'' Mr Vicha said.
IFS Capital (Thailand) PCL was established more than 19 years ago and is a leading company in the factoring business in Thailand for both local distributors of goods and exporters. Factoring helps to improve the cash flow of IFS’ clients and that helps them to further expand their businesses. IFS is also a member of International Factors Group, a worldwide factoring chain with more than 152 member companies in more than 55 countries around the world. Upon IPO, IFS also will start to offer equipment leasing and hire purchase services for companies wishing to expand their production capacities or to improve their operations. Clients of IFS are mostly Thai SMEs from the auto parts, electrical appliances, food & beverages, paper and packaging, as well as services industries such as manpower, security and entertainment.