Monday, August 10, 2020

Garbage power producer ETC plans to list on mai with IPO next month

Jul 09. 2020
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By The Nation

Earth Tech Environment (ETC), a subsidiary of Better World Green (BWG), will be listed on the Market for Alternative Investment (mai) and launch its initial public offering (IPO) in August.

The funds will be used to construct additional garbage power plants, expecting the government to open additional electric power bidding over 400 megawatts this year.

This move followed the BWG shareholders' resolution.

Aekkarin Luengviriya, ETC president and chief executive officer, said that the company's registered capital was Bt1.120 billion, while there are 2.240 billion shares with par value of Bt0.50 per share.

"The company will sell 600 million shares of which 60 million shares, or 10 per cent, have greenshoe option to gain confidence among investors during market volatility," he said.

He added that to reward the current BWG shareholders and increase the value of BWG shares, the company will allow current BWG shareholders to subscribe to ETC's 95.8 million newly issued ordinary shares.

"Shareholders who hold 40 BWG shares can subscribe for one new ETC ordinary share," he added.

Currently, ETC's main business is the garbage power plant, while the company will recognise revenue from three power plants with production capacity totalling 16.5MW by this year. The company's electricity charge rate was between Bt5.83 and Bt6.83 per unit.

ETC's parent company will be responsible for the distribution of refuse-derived fuel, a material for producing electricity, while subsidiaries will be responsible for the construction of power plants.

Meanwhile, ETC's earnings before interest, tax, depreciation and amortisation (EBITDA) was Bt25 million per megawatt, higher than other types of power plants.

ETC also gained support from the Board of Investment (BOI) for eight years and the company can ask for BOI's assistance for another five years.

ETC reported revenue of Bt362.39 million in 2019, up from Bt325.24 million in 2018, while the company's EBITDA was Bt202.90 million, down from Bt224.40 in 2018 due to expenditure incurred in the construction of two additional power plants.

Meanwhile, ETC's net profit in 2019 was Bt57.55 million, down from Bt66.96 million in 2018.

The company's revenue and net profit in the first quarter of this year was Bt134.90 million and Bt24.18 million respectively.

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