FN Factory Outlet Plc will raise 970 million baht from its initial public offering (IPO) and list on the Stock Exchange of Thailand (SET) on Nov 14.
The company will float 250 million shares at 3.88 baht each. The par value is 50 satang and share subscription runs from Nov 7-9.
Finansia Syrus Securities is the lead underwriter with six co-underwriters -- Capital Nomura Securities, Philip Securities (Thailand), Trinity Securities, RHB Securities (Thailand), KGI Securities (Thailand) and Asia Plus Securities.
FN plans to use proceeds from the IPO to expand its fashion outlet business, repay debts and reserve for cash flow.
It will open five new fashion outlets and renovate its seven existing branches by next year, said chief executive Benyiam Songwatana.
The first new outlet among the five will open in Ayutthaya by the end of the year. Each one will require an investment of 120 million baht.
"Mobilising funds from the IPO will help enhance our business potential and competitiveness. This will give us a stronger growth in the future," he said.
Of the total IPO shares, 70% are for institutional investors and the remaining 30% for retail investors.
Somsak Sirichainarumitr, chief executive of Asset Pro Management Co, the financial adviser for FN, said demand for shares among institutional investors is overwhelming being four times oversubscribed during its overseas roadshows last month.
The IPO share price of 3.88 baht is based on the company's price-to-equity ratio at 32 times.
"FN will become a growth stock when it is listed. Its business fundamentals are quite strong as it has low operation costs and its profit margin is higher than that of major retail chains like Big C," he said.
FN targets to open outlets in major tourism destinations and investment costs are not high because the company bought land plots a few years ago.
Moreover, its house brand accounts for 65% of total merchandise.
During the first half of the year, FN posted a net profit of 69 million baht on revenue totalling 526 million. Last year, net profit stood at 146 million baht with revenue of 1.1 billion baht.
Finansia Syrus president Sompop Kreeratisunthonpong said FN outlets are popular among locals as the chain is a pioneer in operating fashion outlets in Thailand.
Its outlets sell not only fashion products but also bedding, leather products, furniture, decorative items and some consumer products.
The outlets are in Phetchaburi, Kanchanaburi, Pattaya, Sri Racha, Pak Chong, Sing Buri and Hua Hin.
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