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Published on February 13, 2008

Prasit Srisiwan, CEO of BFIT Securities - Crane's financial adviser - said the IPO price was a discount with a price-to-earnings ratio of 10.37 times, lower than the industry average of 11.91 times.

Crane stock is therefore expected to provide a satisfactory return for investors, while the company's business is expected to grow on the back of economic recovery following establishment of the new government.

"I don't have knowledge of the stock market and I don't worry about stock trading," Thongchai said. "But I'm confident about the steady growth of our business fundamentals."

The senior vice president of BFIT Securities' Investment Banking, Taweechai Tangthanasup, said the financial structure of Crane qualified the company for listing on the Stock Exchange of Thailand (SET). However, it had to list on the MAI because of new accounting standards.

According to the new "common control" standard for listing on the SET, a listed company must book its revenues together with those of its subsidiaries to an annual consolidated balance sheet. After Crane consolidated its income with that of its four subsidiaries, the total consolidated net profit was less than Bt30 million, the minimum required for listing on the SET. When considered on its own, Crane's net profit is higher than Bt30 million.

Currently, Crane's registered capital is Bt450 million.

"Cho Kai [Crane] was the first company to which the common control standard was applied. It will apply to all companies in the future," Thongchai said. "This standard won't affect us. We want to raise funds either on the SET or the MAI. The proceeds from the IPO will be used to buy new machines which will boost our future income."

Cho Kai provides moving services for heavy devices and tools on industrial and construction sites. It uses cranes, forklifts, vans, containers and manlifts. The company also provides used machine tools for hire.

Thongchai said 65 per cent of the company's revenue came from the electricity generation, refining and petrochemical industries. Another 20 per cent comes from construction and 15 per cent from imports and exports.

Last year, the company recorded net revenue of between Bt900 million and Bt1 billion, up 8-10 per cent year on year. Its consolidated net profit was Bt21 million.

The company expects annual growth of 9-10 per cent after its recapitalisation.

Siriporn Chanjindamanee

The Nation