Saturday, November 23, 2019

With homes planned across Bangkok, Kun eyes MAI listing

Nov 07. 2019
Chief executive Praweerat Dheva-aksorn
Chief executive Praweerat Dheva-aksorn
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By THE NATION

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Villa Kunalai Public Company Limited (Kun), builder of Kunalai-brand homes, plans to seek a listing on the Market for Alternative Investment (MAI).

It will allocate 150 million shares to an initial public offering to raise funds to buy more land and expand its business, with S14 Advisory Company Limited as financial advisor.

It currently has seven projects underway, together worth Bt3.9 billion, and plans two more worth Bt2.17 billion.

Chief executive Praweerat Dheva-aksorn said the company adheres to “four pillars” – potential location (Comfortable), beautiful houses in a warm community (Appearance), professional teamwork (Reliability), and reasonable price (Economy).

The seven current housing projects are under the main brands Kunalai Begins, Kunalai Pollen, Kunalai Symphony and Kunalai Joy.

Its subsidiary Villa Vanich Company Limited focuses on Greater Bangkok, especially Bang Bua Thong district in neighbouring Nonthaburi province.

Nonthaburi is Kun’s strategic location for housing, and the company has just initiated expansion in Chachoengsao under the Kunalai Joy, involving 314 projects on 24 rai. The province boasts economic strength and strong housing demand similar to those of Bang Bua Thong.

Chachoengsao is also part of the Eastern Economic Corridor slated for a substantial boost in economic activity.

Kun has finalised sales on four projects valued Bt1.32 billion and has seven ongoing projects worth Bt3.9 billion. 

There are two new projects worth Bt2.17 billion for future development, including Kunalai Joy 2, the Bt1.5-billion duplex and single-house project in Nonthaburi, which is expected to kick off sales in the second quarter of 2020. 

The other one is Villa Vanich, the Bt672-million shophouse project in Bang Bua Thong, which will start construction and launch sales around 2021-2022.

Praweerat said earnings from the initial public offerings would fund business expansion, including the purchase of more land in Bang Bua Thong and act as a reserve for future projects in all four suburban areas of Bangkok.

The IPO will feature 150 million shares with par value of 0.5 baht each, equivalent to 25 per cent of the total issued and paid-up shares after the IPO.

Kun currently has registered capital of Bt300 million – 600 million ordinary shares (450 million existing paid-up shares and 150 million IPO shares) – and paid-up capital of Bt225 million.

The Securities and Exchange Commission has accepted the filing and Kun expects to be able to list and start trading on the MAI around the end of this year.

Piyapa Jongsathian, managing director of S14 Advisory, said Villa Kunalai is the leader and expert in horizontal housing project in Bang Bua Thong. 

The company posted total revenue of Bt297.5 million in 2016, Bt450.38 million in 2017 and Bt447.09 million in 2018, while net profit was Bt5.94 million, Bt10.80 million and Bt11.56 million, respectively.

For the first nine months of 2019, revenue was Bt461.09 million and net profit Bt43.15 million. The growth of revenue came from increased property sales after projects were gradually closed.

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