BANGKOK, Nov 22, 2013 - (ACN Newswire) - BJC Heavy Industries (SET:BJCHI) set its IPO share price at THB 30 each, after the book-building process that showed strong demand nine times higher than the number of IPO shares, due to the company's strong business fundamentals, outstanding past profitability growth and solid financial strength. The company's IPO shares are being offered for subscription by KGI, financial advisor and lead underwriter, and seven co-underwriters, i.e. Bualuang Securities, Nomura Securities, Finansia Syrus Securities, Tisco Securities, Asia Plus Securities, KTB Securities (Thailand) and Philip Securities, during November 19-22. The first trading day is set for late November.
Mr. Young Jun Lee, Managing Director of BJC Heavy Industries PCL, or BJCHI, a leading provider of engineering equipment manufacturing and installation services for international basic industries, revealed that his company was making an initial public offering, or IPO, of 80 million capital-increase shares at THB 30 each, and has appointed KGI Securities (Thailand) PCL, or KGI, its lead underwriter, and seven securities firms its co-underwriters, in respect of IPO shares which will be available for subscription during November 19-22 and are expected to start trading on the Stock Exchange of Thailand on or about November 28 under ticker symbol BJCHI.
He expressed confidence that BJCHI's long experience and great expertise in the business of manufacturing and installing engineering equipment for the production processes employed in heavy industrial plants, as well as the trusts already won from both contractors and project owners, will help the company maintain its high competitiveness and its ability to support the growing heavy industries around the world, which, he added, are highly profitable and have few competitors. That will translate into the company's continued robust growth in the future, he said.
"In Australia such heavy industries as petrochemicals, natural gas, coal or mining have bright prospects, as around 350 investment projects, worth more than AUD 500 billion, are expected to be developed between 2013 and 2017. That would represent our opportunities to offer our excellence in steel fabrication, modularisation, site erection and precast concrete works and win lucrative contracts," he stated.
Miss Patchpon Sankaburanuruk, Executive Vice President for Investment Banking Department of KGI, BJCHI's financial advisor and lead underwriter, expressed her confidence that BJCHI's IPO shares will be warmly welcomed by the investors, considering the company's strong fundamentals and its outstanding past growth figures in terms of revenue and profit. Especially, in the first nine months of this year, its total revenue stood at THB 3.01863 billion, a 25% rise year on year from THB 2.40327 billion, and its net profit stood at THB 952 million, a 71% jump year on year and a figure higher than the profit figure for the full year of 2012.
These successes are attributable to strong sales growth and profitability, particularly in the third quarter, for which the company recorded a 51% growth in gross margin and a profitability ratio of 45%.
The IPO price of THB 30 was determined based on the results of book-building, which indicated demand was nine times higher than the number of available IPO shares. It is reasonable considering the price-earnings, or P/E, ratio of 8, compared with the average P/E ratio of 16.67 of the listed real estate and construction companies which engage in similar businesses, which means a 52% discount offering potentially handsome returns to the investors. In addition, the excess demand for BJCHI shares is expected to lead to strong interests in the stock following its listing on the stock market.
Currently, BJCHI's registered capital stands at THB 320 million, represented by 320 million ordinary shares at the par value of THB 1 each, and its paid-up capital THB 240 million, represented by 240 million shares at the par value of THB 1 each. The remaining 80 million shares will be issued during the IPO to finance the company's projects for enhancement of production efficiency, acquisition of machines, equipment and land, construction of new office buildings and plants and improvement of internal areas, and to finance its working capital.
Contact:
MasterMind Communications Co Ltd
(for BJC Heavy Industries PCL)
Thitaporn ("Da") Sri-adulphan
Tel: +66 2 612 2081 #124
Mobile: +66 87 556 6974
Email: comebackagains@hotmail.com
Topic: IPO
Source: BJC Heavy Industries
Sectors: Daily Finance, Engineering
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