FN Factory Outlet to list on the SET

The operator of FN Outlet stores and maker of fashion and home products yesterday appointed Finansia Syrus Securities as its lead underwriter.
With the listing, about 250 million shares, or 25 per cent of the 1 billion shares owned by the company, will be traded on the SET at Bt0.50 each, said Somphop Keerasuntonpong, president of Finansia Syrus.
“The listing will mobilise about Bt970 million, of which Bt480 million will be allocated to the establishment of new FN Outlet stores and Bt50 million will be spent on the face-lifting and improvement of existing stores. The rest will be for loan repayments and working capital,” he said.
Benyiam Songwatana, chief executive officer of FN Factory Outlet, said the company currently operated seven stores in the Kingdom, in Phetchaburi, Kanchanaburi, Pattaya, Pak Chong, Sing Buri, Hua Hin and Sri Racha.
He said all seven stores were quite mature and their growth would be in line with the country’s overall economy.
“The key to our success will be opening new stores,” Benyiam said.
“We will open a new complex in Ayutthaya this month. And with new investment capital raised from trading shares on the SET, we plan to open about two new factory outlets every year by focusing on locations in the North, Northeastern and Southern regions of the Kingdom. 
“Each outlet will require Bt120 million of capital investment and 90 days for construction,” he said.
Benyiam said the company would focus on domestic expansion over the next five years before considering some overseas projects, such as in CLMV markets (Cambodia, Laos, Myanmar and Vietnam). 
Benyiam is the successor of his father, Pricha Songwatana, in looking after the 16-year-old company. Pricha is now chairman of the executive committee, providing advice and guidelines for running the business.
In preparation for the listing, FN Factory Outlet appointed Asset Pro Management Co as its financial adviser in March 2014, which helped the company consolidate its five affiliates into one.
“In the past, we have been a family business. My ambition as the second generation of the family is to develop sustainable growth and expansion for the company, as well as to raise the management level to that of a public-based organisation,” Benyiam said.
He said he wanted to add great value to what his father had done over the past 16 years by systemising and standardising the company’s operations.
He added that the company’s policy would be to cash in on the expansion of urban cities in Thailand and the implementation of the Asean Economic Community, which will allow a great number of people to flow into Thailand from neighbouring countries both for leisure and business purposes.
“We are also entering a trial period for online shopping as a new business opportunity. 
“We started selling some products online on Facebook and mobile applications and via our own website,” said Benyiam, though he added that the addition of new physical stores would be the key income driver for the company.
He said all of the company’s existing stores were clustered at the centre of the country, so there were tremendous opportunities for the opening of new FN Outlet stores in other regions of the Kingdom.
“Although many airlines, especially low-cost carriers, have expanded their routes to cover many destinations in all regions of the country, I still believe in the potential of road travel, which is still preferred by many people,” he said.