AIT to boost capital by 50 per cent
Advanced Information Technology (AIT) will increase its capital from Bt200 million to Bt300 million in June in preparation for its three-year expansion plan and to meet Stock Exchange of Thailand requirements.
The company plans to increase revenue to Bt6 billion by 2009, an aggressive targeted rise from Bt2.28 billion last year. It aims to be an active software solution company with a customer-base expanding more into the private sector in addition to current key customers like TOT and CAT Telecom. The company also plans a joint venture with low-capital potential partners. AIT's net profit jumped by 189 per cent to Bt197 million last year, its highest on record, while it recorded revenue of Bt2.28 billion - a 67-per-cent increase. The board on Tuesday approved payment of an additional Bt1.22 cash dividend per share and a stock dividend with a ratio of two existing shares to one new share on May 20. Six million five-year warrants will be also distributed free to existing shareholders by June, before being listed in the stock market. AIT president and CEO Siripong Oontornpan said the company would spend its retained earnings, currently about Bt300 million, for its recapitalisation without any dilution for shareholders. However, share prices will inevitably be diluted technically. The number of the company's shares will increase from 40 million to 60 million, with a stock dividend worth Bt2.50 per share. Six million warrants will be distributed to existing shareholders in June, as well as three million employee stock options. "Our capital base will be higher after the recapitalisation," Siripong said. "This will benefit the company in bidding for large-sized projects. When our business size is larger, we will receive increasing support from financial institutions." According to its three-year plan, this year's revenue is expected to reach Bt2.7 billion, a 20-per-cent annual increase. Revenue is targeted to reach Bt4.2 billion next year, before hitting Bt6 billion in 2009. Executive senior vice president Asawin Kangvolkij said the company planned to be a service company in which revenue from service business is 20-25 per cent of the total, compared to the current ratio of lower than 10 per cent. One-third of revenue will be generated from new customers from the private sector shifting from TOT and CAT. "We have a plan to expand our customer base into various industries such as financial banking, insurance, manufacturing and listed companies. This will help us to meet the Bt6-billion target," said Siripong.
Anoma Srisukkasem The Nation
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