Rasa Property Development's stock provided a return of 3 per cent above its initial public offering (IPO) price on its market debut yesterday. The stock was traded at Bt6.60, above the offering price of Bt6.50 per share, at the opening bell and headed north to peak at Bt6.85 before weakening slightly to end the day at Bt6.70.

Rasa is only the second company to be listed on the stock market this year.

Assistant managing director Lertmongkol Waravenuch said he was satisfied that the stock price had managed to stay above the IPO price.

"This is because our good fundamentals have convinced investors of the potential growth of the company. Bt6.50 per share was priced when the index was around 660, but today the index has risen to 690, so the value of Rasa's stock has risen accordingly," said Lertmongkol. "However, the volume may be thin as most investors have already taken a break for the Songkran festival."

He believes that after Songkran, Rasa's stock will stay above the IPO price level only if uncontrollable factors such as changes in the economic or political situation do not cause it to drop in line with market mechanisms.

The company raised Bt130 million through the IPO. It will spend Bt80 million to buy land near electric rail routes, while Bt30 million will be used to repay debts. The rest will be utilised as working capital.

After loan repayment, the company's debt-to-equity ratio will drop to 0.5 times.

The developer has enough funds to invest in its ongoing projects - two condominiums and three housing projects - without the need to increase capital for at least a year.

Speaking as the lead underwriter, Trinity Securities president Kampanart Lohacharoenvanich said the firm had kept 3.5 million Rasa shares in its portfolio for investors who failed to subscribe during the IPO period.

"The subscription period fell before a long holiday. However, we have now already transferred most of the shares to customers. If shares are left over, the company has enough funds to take all the remainder," said Kampanart.

Seamico Securities has set a fair value for Rasa's stock at Bt7.20.

With success in the lower-priced, mid-end, detached-housing segment, gross margin is expected to grow.

This year, Rasa plans to launch a detached-housing project targeting the mid-end market and a condo project near a BTS station.

The sluggish economy may slow demand in the detached-housing market for average unit prices higher than Bt5 million, which is Rasa's core business focus.

Meanwhile, Ubis (Asia), a manufacturer of can coatings and closure sealants, will launch its 41 million IPO shares to the public on April 26 and 27, the company announced yesterday.

Ubis's sales last year amounted to Bt463 million. It posted Bt41 million in net profit.

Siriporn Chanjindamanee

The Nation