<article>Siam Wellness Group Public Company Ltd (SPA) has revealed its plan to open more branches with a total investment of 100 million baht (US$ 3.125 million).</article>

Siam Wellness Group Public Company Ltd (SPA) has revealed its plan to open more branches with a total investment of 100 million baht (US$ 3.125 million).
President Wiboon Utsahajit said the company’s plan was to open at least three branches to maintain its growth.
“We are focusing on domestic market to diversify our risk, targeting the crowd seeking four-star and three-star services.”
The funding source will come from SPA’s initial public offering (IPO) on the small companies trading exchange, Market for Alternative Investment.
SPA will float 170 million shares at 0.25 baht per share, accounting for 29.82% of the total shares after the IPO which was targeted by end of this year. Globlex Securities is the financial advisor.
At that IPO price, the company will raise 42.5 million baht (US$1.32 million).
Apart from business expansion, the capital from the IPO will be channeled into the repayment of debt while the remaining fund would help boost the company’s liquidity. The company has a long-term debt of 70 million to 80 million baht (US$ 2.1 million – US$ 2.5 million) with debt ratio of 0.7 times.
Post its IPO, SPA will be the first publicly-listed wellness company in Thailand.
The company positions itself as the spa service provider for middle to premium markets.
SPA has 13 spa branches under three categories, three branches with five stars, nine branches with four stars, and the other with three stars.
The investment for five-star spa service requires 25 million baht (approx. US$ 780,000 million) for a branch 700-800 sq.m in size. The four-star service needs 15 million to 20 million baht (US$ 470,000 million – US$ 625,000 million) for a similar branch size, while the three-star spa service operates within three sq m outlets requiring significantly less investment.
Utsahajit added that the investment for the expansion of three-star spa service was not likely to yield immediate returns as the client groups could overlap. The company is revising a new business model for this category.
According to the Department of International Trade Promotion, health business in Thailand was valued at around US$ 660 million in 2013. The 2012-2017 growth rate of health tourism industry, which health business was correlated to, was 9.1 %.
photocredit: freedigitalphotos.net

Siam to raise $1.31 m from IPO by year-end

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