Alla Plc, a manufacturer of material handling equipment, has priced its 150 million initial public offering (IPO) shares at 2.88 baht per share, with trading due to start on Nov 8.
Managing director Ong-ard Puntuyakorn said the company discussed the matter with an adviser and underwriters before settling on 2.88 baht. He said it is a reasonable price for both the company and investors.
Alla appointed Advisory Plus Ltd (Thailand) as financial adviser and Capital Nomura Securities as the main underwriter, with six other securities companies as co-underwriters of its IPO.
Mr Ong-ard said details of the share price were filed to the Securities and Exchange Commission and the shares are expected to start trading on the Stock Exchange of Thailand Nov 8.
The company produces and distributes material handling equipment such as cranes and hoists, industrial doors, dock levellers, and PVC strip curtains used in manufacturing, construction and logistics sectors.
Alla and its subsidiary, Onvalla Co, are the sole sales agents of Stahl and Abus, German producers of hoist and crane components.
He said Alla earmarked 80 million baht of IPO funds to expand its warehouse in Pathum Thani and another 60 million to expand its factory in Chachoengsao.
The rest of the funds from the IPO will be used to pay debt of around 50-60 million baht and as working capital, said Mr Ong-ard.
Alla wants to set up a joint venture in Indonesia next year where it would hold 33% of the shares, said Mr Ong-ard.
"We think Indonesia offers a great opportunity for us because of the population size and the developing industrial sector that needs our products and services," he said.
The company posted revenue of 924 million baht in 2013, 1.07 billion in 2014 and 870 million in 2015.
In the first half this year Alla posted revenue of 292 million baht with net profit of 29 million. Second-half sales will be similar to the first half, said Mr Ong-ard.
"2017 will definitely be a good year for us as we already bid to provide products and services on a number of projects, especially in the waste-to-energy sector," he said.
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