Chairman Sompong Wittayaraksan yesterday said the company would use the proceeds from the issue of 120 million warrants for its future expansion, including building its customer base in the energy-saving auto market. This will help the company offer a complete range of auto services.

The company also plans to penetrate the luxury used-car market.

SEC plans to grant about 100 million warrants to existing shareholders at one warrant for every four shares held. The striking price for these warrants will be Bt3 each, and the company will also allocate 20 million warrants to directors and employees at the exercise price of Bt2 apiece.

The warrants mature in three years and can be converted gradually, in accordance with the exercise conditions. An extraordinary shareholders' meeting will be held on January 11 to approve the warrant issuance, and the company will ask the Securities and Exchange Commission for approval by next March.

Sompong said the new company would install devices in cars that would allow them to run on natural gas for vehicles and liquefied petroleum gas. He said with few competitors in the market, there was plenty of room for a new player.

The new company will import high-quality equipment from Europe to convert all luxury cars in the market to alternative fuels. It will also import energy-saving cars.

He said the energy-saving car market showed good potential, what with oil triple the price of natural gas.

"If the business grows well, the company would be ready to start a franchise

system to cover the market nationwide," he said.

The company might trade premium used cars next year. With strong customer recognition, the expansion into the used-car market looks promising, particularly among lower-end customers, he said.

The company expects sales this year of Bt2.7 billion.