Pace Development has confirmed its planned IPO remains on track for July or August despite the free fall in global stock markets including the Thai bourse.
Chief financial officer Natha Kittiaksorn said the company plans to float 600 million IPO shares no later than August, depending on the Securities and Exchange Commission's approval process.
The Thai stock market has slid 15% from the year's closing peak of 1,643.43 points on May 21 on a big wave of repatriation of funds.
The outflow was sparked by foreign investors becoming spooked by the US Federal Reserve's increasing optimism over that country's economic outlook and signalling a start to tapering off its stimulus programme later this year and halting it in mid-2014.
The monetary easing's exit will end an era of cheap money and dent demand for assets in emerging markets.
Charamporn Jotikasthira, president of the Stock Exchange of Thailand, last Thursday also voiced worries the stock market's crash could whittle down investors' appetite for IPO shares and cause some companies to consider delaying their fund-raising plans.
Ms Natha said half the 600 million IPO shares will be earmarked for retail investors and the other half for institutional investors. The company's strong fundamentals will help the company's recapitalisation plan ride through the stock market uncertainty.
The property developer's ongoing investment plan is the main reason for it to stick to the IPO plan's schedule, she said. Proceeds from the IPO will be used to finance two residential projects.
They are the MahaSamutr, an ultra-luxe villa-and-country-club resort in Hua Hin; and a luxury condominium project on Bangkok's Lang Suan Road.
Part of the IPO proceeds will be used to pay its debts and redeem short-term bills of exchange totalling 400 million baht.
"Debt payment after the IPO will reduce the company's debt-to-equity ratio from the existing low level of 0.5 times and boost net profit, which came in at 28 million baht last year, said Ms Natha.
About the author
- Writer: Somruedi Banchongduang
Position: Business Reporter