Thai fibreboard maker SKN to raise $44.4m via IPO

S.Kijchai Enterprise Plc (SKN), a local manufacturer and exporter of fibreboard products, expects to raise 1.47 billion baht ($44.4 million) by selling 200 million shares in its initial public offering (IPO) at a price of 7.35 baht apiece.

In total, 160 million shares will be offered to institutional and retail investors, and the remaining 40 million shares to sponsors.

The company plans to spend around 700 million baht out of the IPO proceeds on debt repayment and another 500 million baht on capacity expansion, managing director Vichai Sangwongkit said. The remaining amount will be used as working capital.

SKN is set to boost its production capacity from the current 260,000 cubic metres per year to 500,000 in the third quarter of 2018, he added.

The company has appointed Tisco Securities as the lead underwriter with AEC Securities, KGI Securities (Thailand), Trinity Securities, Asia Plus Securities, Krungsri Securities and UOB Kay Hian (Thailand) as co-underwriters.

SKN recorded revenues of 742.5 million baht and net profit of 103.71 million baht in the first six months of this year. Last year, its revenues stood at 1.5 billion baht, with a net profit of 262.58 million baht.

Over 90 per cent of its production is exported to global markets, while the remaining 10 per cent serves the domestic market.

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