Financial adviser upbeat on Namyong IPO as demand far exceeds share allocations

Tisco Securities Co will be officially appointed as Namyong Terminal’s financial adviser and lead underwriter.

Tisco Securities’ Head of Investment Banking, Thanachai Buntivoraphumi, believes Namyong’s IPO shares will be well-received by investors as the demand for Namyong’s IPO shares exceeds the number of shares allocated to institutional investors by 13 times.

Namyong Terminal’s management is confident in the business prospects, in line with the rapid growth of the Thai automotive sector, a leading vehicles production and assembly base in the Asean region. 

Namyong Terminal which has an 80-per-cent share of the vehicles export shipping terminal market, expects more than 1 million vehicles for export markets to pass through its fully-integrated (Roll-on/Roll-off) A5 pier in Laem Chabang port. Based on data over the past 10 years, the volume of Thailand’s vehicle exports grew an average of 17.8 per year. 

With continuing projection of such growth rate, Thailand would be exporting as many as 1.5 million vehicles in the next two years to maintain its leading position in Asean for vehicles exports. 

This should contribute positively towards Namyong Terminal’s business prospects for the future, according to Namyong Terminal’s CEO, Theparak Luengsuwan.

Apart from the A5 pier, Namyong Terminal and NYK Group (listed on the Japanese bourse and one of the world’s leading shipping firms) have co-invested in Laem Chabang International Ro-Ro Terminal Co (LRT), which operates a shipping terminal (C0 pier) for import and export of vehicles and other goods. 

Namyong Terminal holds 20-per-cent equity stake in LRT with option to acquire more LRT shares from NYK up to 29 per cent, for a possible total of 49 per cent shareholding. 

As for the upcoming IPO, Namyong Terminal will place 202.50 million common shares, or 33.15 per cent of all common shares issued and paid for, following this upcoming capital-raising common shares sale. 

Namyong currently has Bt620 million as registered capital (at Bt1 par value per share), of which Bt414.50 million is issued and paid-up capital.

The six other leading securities firms, which will help Tisco Securities distribute and guarantee the share sales are KGI Securities (Thailand), CIMB (Thailand) Securities, SCB Securities, Capital Nomura Securities, Bualuang Securities and Asia Plus Securities.