Chow Steel IPO planned for December

 Pinmanee Makmontana, Managing Director of Triple A Plus Advisory Co Ltd, its financial advisor, said that Chow Steel will benefit from economic recovery and increasing steel demand in construction projects. The company has also enlarged the client base.
 "Those are the important factors to support business growth in the future which has already reflected in the 9-month operating results," she said.
 Seeking a listing on Market for Alternative Investment (MAI) in mid-December, Chow Steel in the first nine months of this year achieved 85 per cent of its annualised revenue target of Bt5 billion. Proceeds from the capital increase will be used to growing its upstream steel business. The company produces steel billets, for construction steel production. The 200 million new shares will increase its capital to Bt800 million.
   "The proceeds will be used to grow business expansion and lower the cost which will result in better net profit. After the offering of the new shares, the shareholding ratio of the “Jiratomsiri” family will decrease from 84.5 per cent to 63.4 per cent,” said said Chow Steel CEO Anavin Jiratomsiri.
 He added that as the production aims mainly to substitute imports, the company has the advantages in delivery cost and on-time delivery. Its customers do not need to handle big lots of billets, like in the case of imports. New orders are expected to grow in 2012 as the steel business will continue to expand due to the government’s mega projects and more demand for renovation and repair after the floods.
                  The company’s revenue for 2011 are targeted to grow around 30 per cent from Bt3.89 billion in the previous year.