Despite the highly volatile market, Communication & System Solution Plc (CSS), an electrical and telecommunications solutions provider, is sticking with its schedule to begin trading on the stock market on Sept 3.
"We have to raise funds sooner or later to expand our business, even though the market is highly fluctuating," said chief executive Sompong Kangsawiwat.
"The situation in future is also unpredictable. Who knows if the index will rise or go down? The investors are the most important. If they are not confident in our potential to grow, they will not invest in the stock, no matter what. Also, the price is significant."
The company operates mainly as a distributor of engineering products and installer of telecommunications systems.
Sompop Keerasuntonpong, the president of Finansis Syrus Securities, CSS's lead underwriter, said the initial public offering (IPO) price has been set at three baht a share, with a par value at 50 satang.
CSS plans to distribute 200 million new shares, with 10 million allocated to the company's management and employees.
Mr Sompop said the IPO price is discounted 49% from the commerce sector's price-to-earnings ratio of 26.65 times as of June, when it was working out the deal.
The IPO is scheduled for Aug 26-28, with trading due on the Stock Exchange of Thailand on Sept 3. CSS's paid-up capital will increase from 250 million to 350 million baht once the IPO is completed.
"The IPO price is set very carefully as the market is highly volatile. We offer a huge discount on the IPO price, while major shareholders have agreed to hold shares in a silent period. That should be enough to attract investors," said Mr Sompop.
He said the company will mobilise funds of about 600 million baht from the IPO, with 80 million earmarked for constructing new factories and offices and the rest for working capital.
CSS has liabilities of 1.38 billion baht.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter