BJCHI plans IPO, debut on SET this year
BJC HEAVY Industries Plc plans to float 80 million shares and list on the Stock Exchange of Thailand by year-end.
The company is confident its solid fundamentals and the growth of the petrochemical and gas sectors will overcome the quiet initial public offering (IPO) climate.
BJCHI expects this year’s revenue to grow at least 15 per cent thanks to its backlog of over Bt2 billion.
Managing director Young Jay Lee said yesterday that BJCHI has submitted an IPO filing to the Securities and Exchange Commission and is awaiting its approval so that it can go public next quarter.
BJCHI has registered capital of Bt320 million and paid-up capital of Bt240 million.
KGI Securities (Thailand) is BJCHI’s financial adviser.
The IPO proceeds would finance the upgrade of production efficiency and productivity via the purchase and installation of equipment, construction of an office building and renovation of the company’s interior. The rest of the capital will be used to invest in land and a plant.
About 95 per cent of BJCHI’s revenue comes from overseas, especially Australia. Countries that account for 5 per cent of BJCHI’s revenue have good growth potential, especially Australia, where annual investment in the energy and petrochemicals sectors is growing at an average of 54 per cent. Investment in 2017 will reach 200 billion Australian dollars (Bt5.92 trillion).
According to KGI Securities, the share distribution ratio has not yet been specified. A roadshow will precede subscription. BJCHI may set the IPO share price simultaneously with book-building.
The company’s strength lies in the continuing growth of its operating results, in line with the rapid expansion of the petrochemical, gas and mineral industries. Besides Australia, it has customer bases in South America, Asia and Europe.
The major shareholder is the Lee family with 99.27 per cent. The IPO will dilute their equity to 74.44 per cent.
