Gunkul Engineering, one of the largest trading companies in the power industry, plans to list on the Stock Exchange of Thailand next month as part of its move into the solar energy business, which is expected to account for at least 30 per cent of its sales in three years.
"We expanded into the alterna¬tiveenergy business last year, and this year we raised our status to become a leading local solar energy supplier by signing a power pur¬chase agreement with the Provincial Electricity Authority to supply a total of 30.9 megawatts of solar energy starting in December," chief executive Gunkul Dhumrongpiyawut said yesterday.
The company has appointed Tisco Securities as the underwriter for 100 million new shares to be issued for the initial public offering next month. The IPO will raise Gunkul Engineering's paidup capital to Bt400 million from Bt300 million now.
The company supplies primarily transmission and distribution, electrical and renewable energy products, including solarcell power generators, to both the public and private sectors.
Proceeds from the IPO will be used to invest in valueadded businesses, in addition to Gunkul's existing electrical and renewabl eenergy equipment business, and in the solarcell powerplant project as well as to strengthen working capital.
Paiboon Nalinthrangkurn, CEO of Tisco Securities, expressed confidence that Gunkul's stock would receive strong interest from local individual and institutional investors.
"The business structure of Gunkul Engineering has strong potential in the market, where the company has enjoyed little competition. The business has potential for growth. Energy consumption in Thailand is expected to double, according to the Power Development Plan," he said.
The trend towards alternative energy, such as solar energy, will become popular in Thailand, he said.
Tisco will go on a local roadshow to provide information on Gunkul Engineering to individual and institutional investors. The IPO price will be set via bookbuilding among institutional investors.
Gunkul Engineering posted Bt555.03 million in sales in the first six months of this year, up 54.47 per cent over the same period last year, and expects to achieve Bt1.1 billion in sales for the whole this year, up 15-17 per cent over last year.