Sricha makes successful debut
Sriracha Construction (Sricha) was the 7th most active stock today, when the company debuted on the Stock Exchange of Thailand.
Sricha, which provides engineering services in and out of Thailand, ended the first trading day at Bt16.80, 12 per cent above its initial public offering price of Bt15.
Aira Securities Plc expected the company's share price to rise further to Bt23.50 at the end of this year and Bt24.60 in 2013, which presented the 57 per cent and 64 per cent upside gain from the IPO price. Attributable to the growth is high gross profit margin. In its research note, Aira said that the inthe past three years, the average gross profit margin was as high as 57 per cent thanks to the expertise in production and engineering team.
It expects Srichai to strike more deals in the second half, which will increase the backlog from Bt860 million now to Bt1.5 billion in 2013.
