SNC Former boss named Best CEO

“I thank the Stock Exchange of Thailand for persuading me to list the firm. The listing forced me to formulate better operating plans to create value for shareholders,” Somchai said yesterday.
He beat six other nominees including Anon Sirisangtaksin, president and chief executive officer of PTT Exploration and Production; Pichet Sitamnoy, managing director of Bualuang Securities; and Pravesvudhi Raiva, president of S&P Syndicate.
 The Best CEO awards in the past seven years had been presented to the captains of bigcap stocks. SNC Former, an international manufacturer of air-conditioning and auto parts, is a medium-sized stock with market capitalisation of Bt5.6 billion last year.
 Somchai took the lead this year thanks to his company’s impressive financial results. Sales grew tenfold in the past six years, from Bt800 million in 2004 when the company was listed to Bt8 billion in 2010.
This success did not come overnight. Somchai still remembers that the company’s stock price stayed below the initial public offering price for 201 days.
The new chapter came when the company raised capital in 2007. Then, he had to convince shareholders of the company’s potential, regardless of the poor stock performance in the first years after listing. Luck was on his side when Lombard Investments joined the public offering, asking for all issued shares. The international fund ended up buying 50 per cent of the shares, at US$18.7 million (about Bt585 million).
“Before the listing, I was like most businessmen. I did not have to reveal financial data to anybody. As the sole shareholder, I worked as I saw fit. Then, I avoided listing for fears of regulations,” he told reporters.
The turning point was when the firm piled up huge debts while winning orders that demanded new investment. Somchai decided to list the company in 2004. He thus came under a number of rules, but he became a disciplined entrepreneur in return. From a company that closed its books once a year, now it can close once a month.
“I became a more responsible entrepreneur. Now, shareholders’ value is my priority,” he said. To push profitability, he appointed 80 mini managing directors, each driven by specific key performance indicators.
With economic deterioration in the United States and Europe, SNC is ready to switch to other markets. “I envisage more joint ventures, aside from mergers and acquisitions, to push the growth.”