Lightning protection firm launches IPO
Total solution grounding and lightning protection system firm Kumwell Corporation has set an initial public offering or IPO of Bt1.10 per share at par value Bt0.50/ share with bookings due to open from July 24-26, 2019.
The company is issuing 130 million new shares for trade in the market for alternative investment or mai on August 1, 2019, Phillip Securities Co Ltd’s managing director of investment banking Vicha Tomana, who is Kumwell Corporation Plc’s underwriter, said on Monday.
He added that the price of Bt1.10 per share was based on the company’s price earnings ratio or P/E ratio, which is calculated from its net profit from the second quarter of the year 2018 to the first quarter of 2019.
Kumwell Corporation Plc’s chief executive officer Boonsak Keatcharoonlert said that the company aimed to raise capital of Bt143 million from this IPO to develop its new plant to produce grounding rods worth Bt68 million, with Bt10 million being used to renovate its existing plant, Bt8 million going into research and development of new products and the remaining Bt20 million for use as cash flow.
With the investment plan, the company expects its total revenue will growth by double digits a year, beating the earlier growth average of seven and ten per cent a year, he said.
