PROPERTY FIRM Chaopraya Mahanakorn Plc ( CMC) plans to raise funds through an initial public offering (IPO) in the Market for Alternative Investment (MAI) and has appointed Maybank Kim Eng Securities Plc as its financial adviser and lead underwriter.
The company’s chief executive officer and managing director, Wichian Pattayanunt, said that the company expects to become a leading integrated property developer by focus on developing “unique and high-value projects” under condominium brands such as Bangkok Horizon, Bangkok Fe'Litz, and Chateau in Town. It will also pursue growth thought its high-end housing and town-home brands such as Kasa Eureka, Kasa Diva and the Rich.
For the past three years, CMC has consistently achieved strong business results, Wichian said. The company had revenue of Bt1.52 billion in 2017, Bt2.09 billion in 2016 and Bt1.41 billion in 2015.
The developer also reports a high gross profit of Bt634 million in 2017, Bt879 million in 2016 and Bt558 million in 2015, and recorded net profit of Bt127 million in 2017, Bt156 million in 2016 and Bt47 million in 2015.
Currently, the company has three condominium projects under construction with a combined project value of Bt2.8 billion. Two of these projects will be completed this year, while the third will be completed early next year. In addition, CMC plans to build 10 projects, worth Bt10 billion, within three years.
At present, CMC has a registered capital of Bt1 billion, with paid capital of Bt750 Million. The company plans to offer 250 million shares (at Bt1 par value), equal to 25 per cent of the total number of shares, to the public and investors in the fourth quarter of this year. CMC plans to use the IPO proceeds to acquire new land plots and invest in new projects. The flotation will also strengthen its financial structure, which has a debt to equity ratio of two times. In addition, this will increase the working capital, enabling the company to enhance its business and create good returns for all investors.
Montri Sornpaisal, chief executive officer of Maybank Kim Eng Securities Plc, said that the company is confident that the IPO shares will generate strong interest from investors.
“This is because CMC has strong business fundamentals and a good business plan to grow its business,” Montri said.
“In addition, its management team has a proven 24-year successful track record. Therefore, we expect CMC to become a growth medium-size property stock that will grow continuously and generate good return for investors.”