Amid uncertain economic factors, including the market slowdown, companies in Thailand are on course to raise funds from the market. Raja Ferry follows its schedule to start trading on the Thai bourse in November. And, Ticon Group too remains optimistic to issue 3 billion baht additional shares through Ticon Real Estate Investment Trust to mobilise funds before this year end.
Raja Ferry plans $19m IPO
Raja Ferry Port (RP), one of the main ferry operators in Thailand, expects to raise 380-684 million baht ($10.7-$19.3 million) through its maiden issue in November.
The IPO price will be announced next week, however, it is set to be in a range of 10-18 baht per share giving a 20-25 per cent discount, said the company’s managing director Apichart Chayopas.
RP will sell 38 million shares with a par value of 1 baht apiece through IPO.
It will use the proceeds to repay long-term debt and buy another ferry to serve tourist demand. It forecasts that the number of tourists to Ko Samui and Ko Pa-ngan will surge by 2 million people a year.
Pinmanee Makmontana, managing director of Triple A Plus Advisory, a financial advisory to this IPO, said that RP’s major shareholder is the Chayopas family, who would like to hold the majority stake of 67.23 per cent, down from 86.58 per cent at present, after IPO.
“This is an intention of the current major shareholder to sell only 38 million shares. They don’t want the par value to be lower than 1 baht and they believe that the proceeds will be enough for their investment and debt repayment,” she said.
With total registered capital of 170 million baht, RP has total assets of 748 million baht and a debt-to-equity ratio is 0.56 times.
TREIT to raise additional $84.7m
Amorn Chulalaksananukul, managing director of Ticon Management, a fund manager of TREIT, said the proceeds would be used to invest in Ticon Industrial Connection’s assets, comprising 53 units of warehouses and factories for rent.
“Apart from boosting the fund’s liquidity, we hope that the larger size of TREIT will attract more investors domestically and internationally,” he said.
After the investment, TREIT will have total assets of 7 billion baht. Of that, 61 per cent is freehold and the rest 39 per cent is leasehold. It has a policy to pay dividend no less than 90 per cent of the net profit at least twice a year.