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Published on October 25, 2007

Managing director Pradej Kitti-issaranon said the share price would be set at no less than 90 per cent of the weighted average price of the company's stock from November 15-23. The subscription period is November 26-30, while the settlement date will be December 4.

The company's stock closed at Bt5.40 yesterday, up 0.93 per cent on the day. The private placement is part of Demco's previous plan to issue 60 million new shares via private placement.

The company has yet to decide when to issue the remaining 40 million shares.

Phaitoon Kamchai, the company's senior official for accounting, said the proceeds from the private placement would be used as cash flow.

He said the company did not yet need to issue the remaining 40 million shares, as no big expansion projects are planned soon. In addition, banks have so far supplied financial facilities for the company.

Demco's current debt to equity ratio is lower than two times. Phaitoon said the company expected this year's income to be Bt2 billion to Bt2.2 billion, an increase from last year's Bt1.35 billion due to business expansion, including in alternative power plant and wind-energy electricity generation projects.

He said the company planned to move from the Market for Alternative Investment, the second-tier market, to the main market, the Stock Exchange of Thailand, as its registered capital has already reached the SET criterion of Bt200 million.

After the private placement, registered capital will increase from Bt263 million to Bt283 million.

Siriporn Chanjindamanee

The Nation