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Published on April 4, 2008

The move will allow it to bid for contracts stemming from the government's mega-projects.

The company, which offers car servicing in addition to selling premium imported cars, yesterday told the Stock Exchange of Thailand it planned to increase its registered capital from Bt520 million to Bt1.03 billion. Its board has approved the issue of 509,776,550 new ordinary shares at a par value of Bt1 apiece. President Sompong Witthayaraksan said the capital increase would give the company sufficient funds to use in its current operations, as well as serve the government's mega-projects.

"We have an interest in those mega-projects related to automobiles," he said. "We're waiting for the official terms of reference before deciding whether to make a bid."

Sompong said the company believed it could sell out the new shares through private placement, following many approaches from investors.

It will allocate 100 million new shares for sale through private placement at a price not lower than Bt5.06 apiece. The rest will be allocated to existing shareholders at a ratio of one new share for every old share held, at a price of Bt2 apiece.

Sompong said SEC would not pay a dividend this year, because it expected to spend a lot in bidding for mega-project contracts. However, the investment will benefit the company and shareholders in the long term.

The company is also planning to build a new head office and showroom in central Bangkok, to open in the third quarter. Sompong said it would be the biggest auto showroom in the world.

SEC recorded a consolidated net profit of Bt61.96 million last year. Its share price closed yesterday at Bt4.98.

Sucheera Pinijparakarn

The Nation