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Published on October 18, 2007

Somphob Sakpunpanom, chief executive of Asset Pro Management, Dimat's financial advisor, said yesterday that the company would submit its listing application to the Securities and Exchange Commission before the end of this month and was likely to schedule an initial public offering (IPO) in November.

Dimat produces premium paints, including protective coatings, wood coatings, building and industrial paints. The company plans to boost its capital by Bt20 million in its IPO by offering 40 million new shares with a par value of Bt0.5 per share. The company's capital will be increased to Bt70 million.

The 40 million new shares will represent 22.22 per cent of the company's total shares and the stake of existing major shareholders will be diluted from 85 per cent to 66.35 per cent.

Dimat (SAIM)'s managing director, Suraphol Rujikarnchana, said the proceeds from the IPO would be used for factory and warehouse expansion to support an increase in the company's production capacity from 300,000 litres per month to 500,000.

Over the past three years, the company's sales growth has averaged at least 10 per cent. In 2005, it recorded sales of Bt230 million. The figure rose to Bt262 million in 2006 and to Bt300 million this year. The company's accounting year ends in June.

Suraphol said Dimat would grow according to the country's economic growth because most of its customers were in the energy and petrochemical industries, and needed anti-rust coatings. Among the structures Dimat helps to protect are Unocal Thailand's offshore gas platforms, PTT's oil warehouses and the power plants of the Electricity Generating Authority of Thailand.

At present the overall market for paint is valued at around Bt22 billion per year. Of this, Bt15 billion is for building paints, Bt6 billion for anti-rust coatings and Bt1 billion for furniture coatings. Dimat's share of the Thailand market for anti-rust coatings is around 10 per cent and it also holds 10 per cent of the market for furniture coatings, Suraphol said.

Dimat's sales in the year ending June 30, 2008 are expected to grow by around 15 per cent, with the greatest contribution coming from its anti-rust coatings.

Siriporn Chanjindamanee

The Nation