Packaging firm files for MAI listing
Panjawattana has filed for a listing on the Market for Alternative Investment next month to mobilise funds to expand its production capacity for plastic packaging.
The company needs to increase its output to meet its target for sales growth of 20-25 per cent this year.
Executive chairman Wiwat Hemmondharop said yesterday that the company had submitted an application to the Securities and Exchange Commission to launch an initial public offering of 112 million shares, which are expected to trade on the MAI by the end of February.
About 108 million shares will be offered to the public and the rest will be reserved for executives and employees.
Finansia Syrus Securities has been engaged as the financial adviser and lead underwriter of the IPO, while Advisory Plus was appointed as an adviser.
Par value is 50 satang per share.
The company plans to use the proceeds to construct an addition to its factory, purchase equipment and pay off bank loans. After the IPO, its debt-to-equity ratio is expected to improve to 1 from 2.8. Most of its liabilities are accounts payable and long-term debt.
Sales growth this year will be mainly driven by expanding its customer base in the growing automobile and consumer industries, Wiwat said. The company supplies packaging for lubricants, milk and consumer products.
Most of the approximately Bt300 million needed to purchase machinery will come from raising funds from the public and internal cash flow.
Panjawattana will build a plant to serve demand for milk packaging, which is seen as one of the potential growth businesses, he said.
The company’s revenue breakdown is 60 per cent lubricant packaging, 10-20 per cent packaging for milk and automobile parts, and the remainder other packaging.
Overseas markets generate only 10 per cent of total sales, Wiwat said.
The company earned Bt119 million on Bt1.38 billion in sales in 2010. For the first nine months of last year, it made Bt112 million on revenue of Bt1.24 billion.
