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Published on February 2, 2008

Chu Kai yesterday launched its initial public offering (IPO), which will continue until Tuesday. Its shares will start trading on February 13.

Meanwhile, Builder Smart, whose IPO will take place from Monday to Wednesday, will start trading on February 14.

Their IPO share prices are Bt1.10 and Bt2.80, respectively.

Builder Smart, a manufacturer of alloy partitions and flooring products, will use the proceeds from 50 million newly issued shares to further its overseas expansion, chief operating officer Sunchai Nuengsit said yesterday.

To date, only 1 per cent of its output is exported. Sunchai wants at least 10 per cent to be exported to countries such as India and Vietnam by the end of the year.

The company has seen its revenues grow from Bt275 million in 2006 to Bt340 million last year. It wants to increase that figure by 20 per cent and increase its profit margin from today's 20 per cent to 25 per cent, said Sunchai.

Some 24 million shares will be allocated to retail investors, with the remainder being taken by various institutional investors including insurance companies and One Asset Management's SME Fund, said the company's financial adviser Somphob Sakpunpanom, chief executive of Asset Pro Management.

The other 26 million shares, along with shares held by owners, will be barred from trading under the "silent period" regulation.

Chu Kai, a distributor of heavy machinery, will offer 100 million shares.

"Our debt-to-equity ratio after the IPO will fall to below 1:1 from 1:1.9. Demand for cranes is brisk, reflected through the huge increase in 2007 against 2006 due to demand from the industrial sector as well as large construction projects," said chief executive Thongchai Phaerangsi.

Chu Kai's trading symbol is CRANE.

Asset Pro's Somphob said 10 companies were awaiting IPOs on the Market for Alternative Investment this year, with three companies - one of which is a renewable-energy firm - having a combined market capitalisation of Bt4 billion. These three companies are likely to be listed in May and June.

Siriporn Chanjindamanee

 The Nation