WICE Logistics IPO set for next week at Bt2.10 each

Vicha Tomana, managing director for investment banking at Phillip Securities (Thailand), the financial adviser and lead underwriter, said WICE was expected to begin trading on the Stock Exchange of Thailand on July 28.
The co-underwriters are Capital Nomura Securities, AEC Securities and RHB OSK Securities (Thailand).
Vicha said the IPO price of Bt2.10 was believed to be attractive as the price-to-earnings ratio is 21 times, calculated from WICE’s net profit in the past four quarters.
The funds raised are expected to create great business opportunities for WICE as the company is keen to have its own warehouse and expand its trailer fleet. New warehouses and additional trucks and trailers will enhance WICE’s supporting capability to the growing logistics industry and to prepare WICE for business expansion in the future.
WICE says it is fully ready for and likely to see significant business expansion, as there has been rising demand for logistics services across the globe. Therefore, WICE is confident of sustainable profitability, given its strong fundamental operations, strong performance, robust finance, low debt-to-equity ratio at only 0.5, and its readiness for dividend sharing of at least 50 per cent of net profit.
“With its long, well-established logistics business experience, WICE is a leading international logistics provider, offering full-scale services, both sea and air freight, along with customs processing, domestic logistics and door-to-door services,” Vicha said.
“The company’s performance has been outstanding and progressing constantly as WICE provides unique services, unlike other companies in the logistics business. We strongly believe that WICE is likely to become a new interesting stock listed on the SET.”
WICE Logistics chief executive officer Araya Kongsoonthorn said this funding would be utilised to increase the company’s potential for expansion – building warehouses, purchasing tractor-trucks and trailers, expanding truck service areas, improving the information system, and providing working capital. This is to deal with a future customer base and services, which are seemingly growing continuously.
“WICE is planning for business expansion in hopes of growing its competitiveness with the main focus on building a new customer base,” she said.
“Under the plan, the company will be seeking to add more value to its existing customer base, including the US, [mainland] China, Hong Kong and Singapore, by offering more channels to provide logistics service to generate higher and sustainable revenue and profit.
“Resulting from the valuable trust by customers in different zones for the past 22 years, services provided by WICE, the variety of these services and WICE’s accumulated expertise in logistics-route geography have proved that they can be the keys to the company’s success in achieving the goal of sustainable growth and hundreds of years in business.”