IRPC taking to the road to boost confidence
IRPC Plc - the former Thai Petrochemical Industry (TPI) - is conducting a road show in New York and the United Kingdom as part of its effort to restore the confidence of both local and foreign investors.
The road show aims to explain the recent change in the company's name, shareholder structure and executive team, managing director Piti Yimprasert told reporters yesterday. TPI was renamed IRPC after a consortium led by PTT subscribed to a 61.5-per-cent stake. Other members of the consortium who acquired IRPC shares are the Government Savings Bank, the Government Pension Fund and the Vayupak Fund, with 10 per cent each. Piti said Phatra Securities had approached the company about joining a domestic road show to be arranged soon. The company is also seeking a credit-rating agency to rate the company's credit and the deal will be concluded early next year, he said. To refinance its debts, IRPC has revitalised its plan to issue US$800 million (Bt29.3 billion) in debentures with a 10-20 year maturity. "We are not sure at the moment whether the issue amount will remain unchanged at $800 million, as it depends on the investment plan. The debentures will be issued in US dollar terms," he said. IRPC plans to spend $1 billion-$1.2 billion on three projects over the next three to five years, he added. A 200-megawatt power plant requires investment of $200 million-$250 million, a project to improve refining quality entails expenditure of about $900 million, and a drainage project makes up the rest. Although the overall petrochemical industry's gross profit for the third quarter will decline, the company is confident that its revenue target of Bt200 billion this year can be achieved, he said. The company plans to join in the development of products with Thai Oil, another subsidiary of PTT. Regarding a report that TPI founder and former top executive Prachai Leophairatana will buy back shares at Bt3.30 each, Piti said he was unaware of this as it is a matter for shareholders. "Since the report was disseminated, investors have become scared and the share price is relatively volatile. He can buy from the stock market. As of June, Prachai held 7 million shares of IRPC, or about 1 per cent," he said. IRPC's stock closed yesterday at Bt7.15, down 0.69 per cent on the day.
Siriporn Chanjindamanee The Nation
|
