THAI INDUSTRIAL AND ENGINEERING SERVICE
TIES to make market debut
Thai Industrial and Engineering Service Plc (TIES) will have its first day of stock trading tomorrow, after its debut on the Market for Alternative Investment (MAI) was delayed last Friday, because of the coup.
Chief executive officer Assavin Chingumtornvong said yesterday that despite the postponement, which was to allow investors time to see a clearer political picture, the company could not be sure its stock would perform well in its debut. "Although the political situation is now clearer, a close watch is still needed," he said. "The company is confident the stock has strong fundamental support." TIES, an integrated construction firm, earmarked 33 million shares to the public at a price of Bt2.80 each and another 2 million shares to the company's directors and employees at Bt1.40 each. The allocation raised its registered capital from Bt100 million to Bt135 million. Of the 33 million shares, half were sold to retail investors and the rest to local and foreign institutional investors and those supporting the company's business. The debut follows closely on the heels of Bangkok Metro Plc's disappointing first day of trading last Thursday. BMCL shares closed at Bt1.25 after falling to Bt1.06, well below the IPO price of Bt1.31 apiece. "We've positioned ourselves as a medium-sized, experienced contractor," said Assavin. "We would like to keep our growth at 20 per cent, in order to offer good returns to shareholders." He predicted the company's sales would jump 20 per cent this year from last year's Bt984 million. TIES has shifted its focus to concentrate on building hospitals and department stores. Executive director Terapol Temsuk said the firm would maintain a gross margin of at least 4 per cent this year. It is poised to bid for a second phase of construction of a plant for a privately owned firm valued at Bt2 billion. The outcome will be known on December 1. Terapol said the company was seeking a partner to join in the bidding. The firm has a high chance of winning the contract, because it built the first phase of the plant. MAI president Chanitr Charnchainarong yesterday said TIES stock had a price-to-equity (P/E) ratio of 6.2, below the market P/E of 8.29. Thanachart Securities acts as the company's financial adviser. Siriporn Chanjindamanee The Nation
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