VGI soars on opening day of trading
VGI Global Media (VGI), a provider of lifestyle media services, is confident that its strong fundamentals and constant growth record will attract great interest in its shares. The first trading day yesterday saw the share close at Bt55, up 57.4 per cent.
It aims to retain leadership in the local lifestyle media industry and also enter other Asian markets. The company believes that its performance in the industry’s peak season in the last quarter of this year will enable it achieve the 40-per-cent growth target.
Keeree Kanjanapas, chairman of VGI, said yesterday on his firm’s first trading day on the Stock Exchange of Thailand (SET) that VGI would be warmly welcomed by investors due to its achievements over the past 13 years in introducing new advertising media and building a nationwide advertising network that fits modern lifestyles and covers every group of local consumers.
Marut Arthakaivalvatee, VGI’s chief executive officer, said that the company’s current goals are to maintain its leadership in the Thai lifestyle media industry and to penetrate other Asian markets by establishing closer links between consumers and businesses.
"We have become a leading provider of lifestyle media services and we’re now a listed company. This means that we have to keep looking for new opportunities and ideas in order to achieve constant growth. In addition, the formation of the Asean Economic Community will accelerate our pace," Marut said.
He added that the last quarter [October to December] of each year is typically the high season, in which the consumer spends more on pleasure trips and other products during holidays and festivals and generous advertising budgets are allocated to VGI to boost sales. This, he said, makes VGI confident of reaching its annual growth target of 40 per cent.
Paiboon Nalinthrangkurn, chief executive officer of Tisco Securities – VGI’s financial adviser and underwriter – said that he was convinced VGI shares would be highly attractive to investors due to the company’s high growth potential and their reasonable price at Bt35 per share, which was determined by book building. In addition, he noted that the 12-fold demand would lead to additional purchases once the shares are traded on the secondary market.
VGI offered 88 million common shares at the IPO price of Bt35 each. After the IPO, BTS Group Holdings (BTS) holds directly or indirectly 212 million shares, or 70.67 per cent. The shares are listed on the SET in the media category. The funds raised by the IPO will be used to finance installation of platform screen doors at BTS Skytrain stations and digital advertising media on those doors, as well as additional digital and static advertising media at Skytrain stations and modern trade stores. They will also be invested in business software and upgrading of information technology infrastructure to cater to business expansion and emergency backup systems. The balance will be maintained as the firm’s working capital.
