Fortune Parts pleased with good debut on MAI

FPI’s stock closed at Bt9, against the IPO price of Bt3.50.

In line with regional bourses, the SET Index lost 2.78 points or 0.22 per cent to end at 1,282.68, on turnover of Bt34.39 billion. Asia Plus Securities attributed the market’s retreat to poor economic figures from China and Japan. While China’s August manufacturing index was the lowest in 10 months, Japan has now posted trade deficits for three straight months. August’s trade deficit – triggered by the strong yen – hit US$9.62 billion (Bt297 billion).

Project Planning Service, a construction and engineering service company, is to follow on the MAI next Wednesday. Its IPO price is Bt0.70.

FPI is the first company selected for listing under the joint stock-searching programme of the Stock Exchange of Thailand and the Securities and Exchange Commission.

Under replacement and original equipment manufacturing contracts, the company supplies parts mainly to plants making 1-tonne pickup trucks, mostly overseas.

Capitalised at Bt295 million, it floated 3 million shares, fetching Bt220.5 million. The proceeds will be used for factory and warehouse expansion, new machinery and refinancing. Finansia Syrus Securities was the underwriter.

Sompol Thanadumrongsak, managing director and chief executive officer, said he appreciated the warm welcome from investors, showing they have confidence in his company’s business.

"Our business relates with the auto industry. Now the market is rising, after the auto industry’s expansion of production capacity. Our business is integrated plastic parts for auto assemblers, both replacement parts and made-to-order according to auto firms’ demand," he said.

The company targets revenue growth of 20 per cent this year from Bt1.3 billion last year. It earned profit of Bt62.93 million on revenue of Bt735.38 million in the first half.