Chic Republic Co, a home furnishing and decoration chain, plans to sell 360 million shares, equivalent to 26.47 per cent of its registered capital, in an initial public offering (IPO) on the Thai Market for Alternative Investment this quarter, according to the company’s statement on Tuesday.
The company’s CEO Kijja Pattamasattayasonthi said the proceeds will be used for debt repayment and business expansion.
Chic Republic, a distributor of decorative items under CHIC and RINA HEY brands, currently has four branches and plans to invest around 1 billion baht to open five more branches domestically and internationally over the next five years.
He said, three of the new branches are under construction, including its first overseas branch, located at Aeon Mall 2 in Phnom Penh and set to open by this year’s end.
Chic Republic plans to open two outlets in Thailand scheduled to open in 2019 and 2020. The Thai stores require an investment of 250 million baht each.
Vicha Tomana, managing director of Philip Securities Thailand, Chic Republic’s financial advisor, said the Securities and Exchange Commission recently approved the company’s application for an IPO.
The company’s current paid-up capital is 500 million baht and, post-IPO, it is expected to increase to 680 million baht with a par value of 0.50 baht apiece.
Chic Republic generated 68 per cent of its sales revenue from retail and 32 per cent from projects. As of June 2018, it has a backlog of 156 million baht from property developers and the revenue will be fully recognized by 2020.