Thailand’s SCI Electric files for IPO, to use funds for ASEAN expansion
SCI Electric PCL (SCI), one of Thailand-based electricity turnkeys, has submitted the first filing today to sell 187.5 million shares in an initial public offering (IPO), aiming at mobilising funds to invest in ASEAN countries. The IPO shares will be equivalent to 25 per cent of the company’s registered capital with a par value of 1 baht per share.
It expects to launch the IPO and start trading in the fourth quarter of this year, said Wicha Tomana, executive vice president of Phillip Securities, a financial advisor of this IPO.
“Despite the economic slowdown, we are not concerned because SCI has a strong financial record and a plenty of projects in hand,” he said.
Apart from being a turnkey for power plants, SCI has been a manufacturer and distributor of electricity-related products such as switchboard, high-voltage electricity post, telecommunication posts and galvanise-covered steel to serve demand in the market.
Besides, it has also operated a power-related business in Laos through its subsidiary Tadslen Power Co.
SCI’s chief executive officer Kriengkrai Pienwittayasakul said, some of the IPO proceeds would be used for debt repayment and the remaining would be spent on its projects in neighbouring countries.
It entered Laos after it was granted a 30-year concession from Electricite du Laos to operate a 3.2-megawatt hydro power plant in 2013.
Now, it is waiting for Laos government’s approval for the second phase of the power distribution system reconfiguration (PDSR) project in Vientiane and other three cities. The project is worth around $67 million.
For Myanmar, it plans to form a 40:60 joint venture with local partner to set up a manufacturing plant of transmission posts at a total investment of $26 million. The construction is expected to start in 2016 after it raises fund from IPO.
“Laos and Myanmar have a great potential growth in this region. Laos aims to be “A Battery of Asia”, while Myanmar has just opened the country and grown rapidly. We believe that our investment in these two countries will drive our growth considerably and sustain our revenue in the long run,” he said.
In Thailand, it plans to build a wind-turbine power plant with a capacity of 45 megawatts with undisclosed partners next year. It will share 30 per cent of total investment of 3.5-3.7 billion baht, he cited.
SCI has seen its revenues grow from 1.44 billion baht in 2012 to 2.18 billion baht in 2014. Its net profit surged from 65.29 million baht in 2012 to 326.51 million baht in 2014.
In the first six month of this year, the revenue was up 14.42 per cent from the same period last year and the net profit rose 81.33 per cent.
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