CMC aims to raise Bt750m from IPO

CMC’s shares will start trading in the Market for Alternative Investment from November 19. 
Wichian Pattayanunt, the managing director and chief executive, said that CMC would target public and institutional investors to subscribe to 25 per cent of its registered share capital.
CMC has a registered capital of Bt1 billion with par value of Bt1 per share.
“Of the Bt750 million raised from the IPO, we plan to allocate Bt250 million to invest in new condominium projects and buy new land plots,” said Wichian. “Another Bt400 million will be used to repay commercial loans and Bt63 million will be used as working capital,” said Wichian.
He said that after the IPO, the company would further improve its debt-to-equity ratio from 1.8 times to 1.3 times. The Pattayanunt Group will hold a 75-per-cent stake, with other investors holding the remaining 25 per cent.
Wichian said that CMC planned to launch 10 new projects worth a total of Bt10 billion in 2019. 
Currently, CMC has a 25 condominium projects with a combined value of Bt4.14 billion ready for transfer and sale. In addition, there are two condominium projects under construction with a combined project value of Bt1.9 billion. Of those, one project will be completed this year while the other project is slated for early completion in 2019. The total project value will reach Bt16 billion, which will be realised in the next three to four years, said Wichian.
For the first six months of this year, the CMC posted Bt976 million in total revenue, a 23-per-cent increase from the Bt795 million achieved in the first half of 2017. The company also reported a gross profit of Bt405 million, a 41.6-per-cent increase from Bt336 million in the same period last year. Importantly, its net profit increased 130 per cent over the Bt53 million posted in the same period last year to Bt123 million.
Given its 24-year successful history in property development, the company is confident of achieving its targeted performance this year. 
With a focus on developing condominium projects along the rapid mass-transit routes, the company operates an integrated business model. By having its own construction subsidiary, the company has continuously achieved a high gross margin. Furthermore, by listing in the stock market, the company believes it can dramatically reduce its financial expenses, its major expense, according to Wichian, who sees improved business performance. 
The company IPO offering can be subscribed via May Bank, Kim Eng Securities Plc and Country Group Securities Plc, the joint-lead underwriters, or via co-underwriters that include KTBS (Thailand) Securities Co Ltd, Tisco Securities Co Ltd, AEC Securities Plc, and RHB Securities Plc.