NBC shares sold out on first subscription day

Nation Broadcasting Corp's initial public offering of 65 million shares was fully subscribed on Monday, the first subscription day, highlighting optimism in the firm's financial prospects.

"NBC's IPO shares were warmly welcomed by investors on the first subscription day," said Kitisak Amornchairojkul, acting CEO of CIMB Securities (Thailand). The brokerage is the lead underwriter for the IPO share sale.

Kitisak said the early full subscription was due mainly to the company's good performance and prospects. Although the overall economy in the first half of the year was not good, NBC recorded 30-per-cent revenue growth from the same period a year earlier.

"We have already closed the selling of NBC's IPO shares. Our clients are still asking for the shares as they are considered interesting," he added.

"We are confident that the price of NBC shares on the first trading day on the Market Alternative for Investment [MAI] on November 11 will close above the IPO price, as demand has exceeded the number of subscribed shares," said Sittichai Mahaguna, chief operating officer and head of investment banking at CIMB-GK Securities (Thailand).

NBC, a subsidiary of Nation Multimedia Group, sold 65 million IPO shares at Bt2.90 apiece.

NBC president Adisak Limprungpatanakij said yesterday that proceeds from the IPO would help support its new-media business expansion, especially digital cable-TV operations.

The company posted revenue of Bt213 million in the first six months of the year, up 31 per cent year on year from Bt163 million. Net profit was Bt17 million, against Bt13 million in the same period last year.

NBC's debt-to-equity ratio was 0.87 times at the end of the second quarter. The company has a dividend pay-out ratio of not less than 40 per cent of net profit.

The company's "Mekong" documentary - full title "Echo From the Well: I Can Hear the Mekong Weep" - has been entered for the 7th World Film Festival of Bangkok at Paragon Cineplex.

The film will be shown at 9.45pm next Friday. Some 130 Thai and foreign films are being shown at the festival.

"The 'Mekong' documentary film is presented from an angle that others are not daring enough to try. Many films regarding the Mekong River are about tourism. But the NBC-produced film was made and presented by Suthichai Yoon, who is a sharp-tongued critic and news analyst," said Kriangsak Silakong, director of the World Film Festival.

Kriangsak believes NBC is ready to produce documentary films for presentation abroad. "Documentaries are the trend in film production now," he said.

Besides "Mekong", NBC is producing documentaries such as "Rohingya" and "Yellow-Red", the latter reflecting the conflicts in Thai politics.

"These kinds of films are interesting in the international movie market," Kriangsak added.

Meanwhile, Jubilee Enterprise will start trading on the MAI on Monday.

The jewellery company raised Bt98 million from its IPO. The 35 million shares were sold at Bt2.80 apiece, which is 10.94 times above its prospective earnings.

It will be the ninth new stock listed on the MAI this year.