Major Development delays share listing
Homebuilder major Development's initial public offering (IPO) has been postponed to next year as its filing was being reconsidered by the Securities and Exchange Commission (SEC), a source at Seamico Securities, the firm's adviser, said yesterday.
"I can't provide a specific date [for the issue] as we have to plan again," said the source, adding the company has sufficient cash to continue its expansion despite the delay. Major Development had planned to offer 200 million IPO shares at a par value of Bt1, accounting for 28.67 per cent of its registered capital. Money raised from the IPO would was to be spent on current and future property projects, debt repayments and be used as cash flow. Two other companies that will also be postponing IPOs are ceramics manufacturer Royal Porcelain and clothing and footwear manufacturer Adda (Thailand). According to the SEC, Royal Porcelain withdrew its IPO filing late last month. Adda had also earlier pulled out. Udomsak Chakreyavanich, managing director of Asia Plus Securities (ASP), which acts as a financial adviser for both Royal Porcelain and Adda, said the firms withdrew their filings as they were not ready to float their shares. "Part of the reason was the volatility in the current market. They haven't yet decided when they would like to do it," said Udomsak, adding that both companies still plan to list with the SET eventually. He said the postponement would not affect the companies' business-expansion plans as both were in a stable financial situation. However, he thought it was possible that they may now pursue alternative means of increasing their capital. "They might decide to raise funds through existing shareholders. Also, both companies are capable of drawing loans from financial institutions," he said. Udomsak added that neither postponement would affect ASP's forecasted revenue as it had not included the deals in its financial plan. Meanwhile, Sareungkan Suthatchuto, director of ACAP Advisory, a financial adviser for Asian Psytoceutical, revealed he will discuss with Asian Psytoceutical's executives whether it wants to seek listing this year. Asian Psytoceutical, a healthcare-products manufacturer, was granted approval by the SEC to float shares. It announced plans to offer 23.25 million shares at a par value of Bt1, accounting for 20 per cent of registered capital. So far this year, 12 firms have been added to the SET, but only five were able to trade above their IPO prices.
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