Bangkok--31 Aug--Kim Eng Securities
Somboon Advance Technology Plc. (“SAT”), ASEAN’s leading auto-part manufacturer and the largest manufacturer of axle shaft in Thailand with No.1 market share (over 80%), has successfully sold its 15,000,000 newly issued shares to both local and institutional investors through private placement offering. The Executive Committee of the company has agreed on 30 August 2010 to proceed on the transaction given an anticipated strong performance by the company as evidence by the good prospect of automotive sector from strong recovery and continual growth of domestic auto sales and export. Moreover, the benefit from diversification into agricultural machinery market (tractor) will become more fruitful.
Mr. Veerayut Kitaphanich, President of the company said “The company has successfully raised new capital totaling 327 MB from the private placement offering of 15,000,000 newly issued shares. Mr. Veerayut asserted that the success of the offering is a result of investors’ confidence in the company’s future prospect given anticipated sales grown of 45% for 2010. It is also projected that the company will be able to maintain a continuous growth of 10% per annum during 2011 — 2014 with an improved gross margin of 20% compared to 18% in the previous year. The company expects to use proceeds from the offering to expand its casting production capacity, increase its investment capacity in the next 1 - 3 years and enhance working capital reserve.
Mr. Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) Plc., said “As a lead manager of the offering, Kim Eng is proud to be part of the success in this offering. Given the company’s promising future, institutional investors and high net worth clients have shown substantive demand from bookbuilding. The company has offered 15,000,000 new shares via accelerated overnight bookbuild process after the market close at the offering price of 21.80 Baht/share (or equivalent to 6% discount from the close price on 30 August 2010). As it turned out, demand from investors has exceeded around 3 times of the new share offering. In order to fulfill such a high demand from investors, Kim Eng has approached Thailand Equity Fund to participate in the offering. Given such a high demand, the fund has decided to sell another 20.000,000 shares of SAT to partially fulfill some excess demand from investors.”
Corporate Communication Dept. / Kim Eng Securities (Thailand) Plc.
Tel. 02-658-6300 ext. 1031-3