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Published on October 25, 2007

Information-technology solutions provider Simat Technologies has set an indicative price range of Bt3.50 to Bt3.80 for its IPO shares, while Millcon Steel Industries has fixed its final IPO price at Bt2.90 a share.

Vicha Tomana, head of research at Phillip Securities (Thailand), said Simat would set a final price for its 18.75 million IPO shares about the middle of next month. The company will conduct roadshows late this month, with shares trading late next month. Phillip Securities is Simat's financial adviser.

Appetite for IPO shares was whetted late last month after Thai Nondestructive Testing gave a 77-per-cent gain over its offer price on debut.

Apart from Simat and Millcon, companies lining up for IPOs include Better World Green and Major Development. Simat is expecting to mobilise Bt70 million from its share allocation. CEO Thongkam Manasilapapan said proceeds would be used to invest in the radio-frequency-identification business, which is promising.

Simat's sales revenue this year will be close to last year's Bt286 million. The private sector contributes 95 per cent of revenue, but it plans to focus on the government sector in the future.

KTB Securities executive chairman Chanchai Kultavarakorn said Millcon would arrange the subscription for its 100 million IPO shares by next Tuesday. The stock will debut on the Market for Alternative Investment on November 6. KTB Securities is the steelmaker's financial adviser.

"Millcon stock will achieve its debut on the back of a 20-per-cent discount on both its IPO price and its strong fundamentals," he said.

Millcon Steel Industries MD Sittichai Leeswad-trakul said the company would issue 100 million capital-increase shares for public subscription. Proceeds will be used to expand its business.

Siriporn Chanjindamanee The Nation