Bangkok--4 Aug--IR network
Investors warmly welcomed IFS’ shares with six times over-subscription reflecting the confidence in the strong fundamentals of the company and its growth potential. The overwhelming response is also supported by the country's strong economic recovery from the recession last year, the bullish stock market sentiment and the attractive IPO share price.
Mr Tan Ley Yen, Chief Executive Officer of IFS Capital (Thailand) PCL or IFS, said its 120 million initial public offering (IPO) shares, which were opened for subscription during July 30 and Aug 2-3, 2010, at 1.35 baht apiece, was very well received by the investors with six times over-subscription.
"IFS’ IPO shares are in demand due to the strong fundamentals of IFS and impressive track record of profit growth during the past 4-5 years. After the listing, the reputation of IFS in the market will be enhanced and our financial position strengthened considerably with a decline of debt-to-equity (D/E) ratio to below 2.0," he said. Furthermore, “IFS will have more alternatives to raise funds and will be able to tap into the Thai Capital Market to expand its business in the future”.
Mr Tan said the future of the factoring and leasing businesses in Thailand is promising as local small and medium sized enterprises (SMEs) are in need of these services to help expand their businesses. As the Thai Economy is projected to grow by as much as 7% in 2010, and the country's GDP growth is projected to grow by between 4-5% for the next 5 years, Mr Tan is confident that the future of IFS is bright.
Mr Kumpon Suangburanakul, Senior Vice President of Investment Banking of KT Zmico Securities, the financial adviser, lead underwriter and book runner of IFS, said the popularity of IFS’ shares and good response from investors was because its IPO price at 1.35 baht was attractive given its price-to-earning (P/E) ratio of 7-8 times compared to the average PE ratio of the Stock Exchange of Thailand of about 12 times. Moreover, the current market sentiment of SET is bullish and investors are confident that IFS’ shares will give them an attractive capital gain when it starts trading on the 10th of August 2010.
KT Zmico Securities and Phillips Securities (Thailand) are appointed the co-lead underwriters of IFS, and the four sub-underwriters are Finansia Syrus Securities, Globlex Securities, IV Global Securities and Siam City Securities.
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