Raja Ferry Port, one of the leading ferry service providers in Thailand, is to raise fund through its initial public offering (IPO) this year in order to buy a built-to-order ferry to serve the tourism boom in the Gulf of Thailand.
Pinmanee Makmontana, managing director of Triple A Plus Advisory, a financial advisory to this IPO, said that it would submit the filing to list on the Market for Alternative Investment (MAI) by the end of the third quarter.
She said it initially plans to offer 38 million shares to the public, equivalent to 22.35 per cent of its registered capital of 170 million baht.
So far, it has a paid-up capital of 132 million baht, divided into 132 million shares with the par value of 1 baht apiece and it will be fully paid up after IPO.
“The company will spend around 200-300 million baht of the proceeds from IPO on a new ferry, 30-40 million baht on debt repayment and the rest will be kept for its working capital,” she said.
Raja Ferry Port currently owns 12 ferries which sail on two routes: Donsak-Samui and Donsak-Pha Ngan. However, due to the continuously increasing number of tourists following the government’s tourism promotion policy and the economic upturn, it needs to buy more ferry to meet the demand.
Raja’s managing director Apichart Chayopas said that it expected to boost the number of its annual passengers from 600,000 to 1 million in the next three years.
“The traffic between the mainland and the two islands will surge after the new airport on Pha Ngan island starts the operation by the early 2016,” he said.
Currently, Raja Ferry Port has more than 60 per cent of total market share in this business, which is worth around 3 billion baht. Apart from carrying passengers, it also provides the service to transport consumer goods, vehicles, large-scale devices and machinery and a large-scale logistics business as well.
The company’s revenue has grown more than 10 per cent over the last three years. Its revenue reached 665 million baht in 2014 with the net profit of 85 million baht.