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SPVI sets IPO price at Bt0.90, plans to list on MAI

SPVI Company, an Apple authorised reseller, has for its initial public offering to Bt0.90 and offered its investors a 49.88-per-cent discount to prepare for expected risks from the instability of the local stock market.

SPVI's profit this year will be down from 2012 because of lower domestic consumption, but it hopes the information-technology market will recover soon, and estimates next year's revenue at Bt2.5 billion.

"It is still a good period to enter the stock market, which should be safe from the impact of the current heated political situation. As of now, the economy is still doing well and the price that we have set is adequate for the current situation," said Somphop Keerasuntonpong, director at Finansia Syrus Securities, which acted as a financial adviser for SPVI.

Somphop revealed that SPVI's IPO would be 110 million shares. The par value of one share is Bt0.50 and the sale value Bt0.90, which he said was the right price if all the basic factors are accounted for.

SPVI's price-to-earnings value is set at 14.02 with a discount value of 49.88 per cent, which is lower than the Market for Alternative Investment's P/E value for the last three months that was set at 27.97 and the discount of 61.78 per cent from the average P/E value of companies with similar businesses.

Reservation for the SPVI's IPO share will be available from December 11-13, and it is expected to list on the MAI on December 19. KGI Securities (Thailand), Capital Nomura Securities and Asia Plus Securities are the co-providers for this stock-market launch.

Trisorn Worayankoson, executive director of SPVI, said the funds raised from the share issue would be used for its long-term expansion plan, which includes investment for new stores and service centres. Some will also be use to improve its communication system.

The company's target for 2014-15 is to establish 10 more counters at IT City branches and to build two more iStudio/iBeat stores along with another Smart Bar store.

SPVI is expected to spend Bt55 million on these store-expansion plans and Bt5 million to improve its social-network capability.

Trisorn acknowledged that SPVI's profit this year would be lower than last year's Bt44.85 million because of slower-than-expected domestic consumption that hit IT-market growth, while no new products from Apple were introduced.

He said SPVI expected the IT market to recover next year and the products that would push the market recovery would be the iPhone 5s and 5c and the iPad Air, which will be launched early in the new year.

Meanwhile Thai Vegetable Oil, one of the biggest shareholders of Prodigy, a manufacturer of plastic bottles, revealed that the latter would list on the MAI in the first quarter of 2014.

Prodigy filed its listing request to the Securities and Exchange Commission in October. It is expected to sell 70 million shares, accounting for 25.93 per cent of the total holding. The price is set at Bt0.50 per share and Maybank Kim Eng Securities (Thailand) has been appointed as its financial adviser.

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