Bangkok--9 Aug--IR network
IFS is confident that its shares will stay above the IPO price of 1.35 baht on the first trading day on August 10 due to the attractive IPO price, the strong fundamentals of the Company and the current positive stock market sentiments.
Mr Tan Ley Yen, Chief Executive Officer of IFS Capital (Thailand) PCL or IFS, said he is confident that IFS shares, which will make its debut on the “Finance & Securities” section on August 10, 2010, will stand above the IPO price of 1.35 baht per share as the IPO price is attractive and the Company has a sound track record of performance and dividends payment. “ IFS shares will be warmly welcomed by investors on its first trading day on Aug 10 as its IPO shares have been over-subscribed by up to 6 times. Investors will be able to enjoy capital gains from their investments “, said Mr Tan.
The funds raised from the IPO totalling 162 million baht will be used to expand its factoring and leasing businesses. IFS has plans to open new branches in the provinces to service its existing clients and as a marketing centre to penetrate the provincial markets of Thailand.
After listing, IFS will see its shareholding’s structure change as the major shareholders IFS Capital Limited of Singapore, which held a 49% stake will see a dilution to 36.49%, and IFS Capital Holdings (Thailand) Limited, will see its shareholding diluted to 36.64% from 49.20%.
The performance of IFS in the past showed a good trend of growth with a net profit of 50.48 million baht in 2007, 71.13 million baht in 2008, and 71.29 million baht in 2009. For the first quarter of 2010, it posted a net profit of 21.81 million baht, up 15.64% from the same period of last year. Performance for the whole year of 2010 is expected to be better than 2009.
Mr Pinit Puapan, Managing Director of KT ZMICO Securities, the financial adviser and the lead underwriter of IFS, said IFS will have a stronger financial position and a bigger capital base to further expand its business. Its IPO shares were warmly received by the investors as the IPO price of 1.35 baht a piece is attractive and he is confident that the price of the shares on first trading day will stay above the IPO level.
Mr Suchai Sutasthumkul, MD of Philips Securities (Thailand), the co-lead underwriter of IFS, said IFS will use the funds raised to expand its existing factoring business and to re-launch its equipment financing business under leasing and hire-purchase. The Company also has a policy of paying dividends to shareholders of at least 50% of net profit after corporate income tax and setting aside for legal reserve. “We hope IFS shares will be popular with investors even after its first day trade,’’ he said.