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Baht/$ 33.84/87 (Bid/Ask)
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GOLD |
12,900
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Funds to pay debt and for working capital
NUNTAWUN POLKUAMDEE
Higher-priced handsets and demand for 3G will help improve revenue for Jay Mart, chief executive Adisak Sukumvitaya tells investors at a briefing on the company's listing plans at the Stock Exchange of Thailand yesterday. |
Jay Mart Plc, a cellular phone retail distributor, will list on the Stock Exchange of Thailand on Sept 16 after floating 75 million new shares in its initial public offering.
The IPO will raise the company's capital to 300 million shares at one baht par value from 225 million now. Pricing will be set next month.
Of the new shares, 60 million will be offered to general investors, 7.5 million for directors and employees and the rest for company supporters. Asia Plus is the financial adviser for the offering.
Adisak Sukumvitaya, the Jay Mart chief executive, and his wife Yuwadee Ponh-archa, will see their collective stake in the company diluted to 70.9% from 93.5% after the IPO.
Mr Adisak said funds raised would be used for debt repayment and working capital. As of June, Jay Mart had total debt of 1.18 billion baht, of which 800 million was short-term debt.
The company, a major distributor of mobile phones and accessories, posted 2007 revenues of 5.89 billion baht, up from 5.19 billion the year before.
Net profits in the first half totalled 57 million baht, up from 45 million the same period last year. Jay Mart reported 2007 net profits of 67 million baht, up from 39 million the year before.
Mr Adisak declined to offer growth projections for this year, saying the market was quite dynamic. A price war in the second half would certainly affect revenues, he said, but remained confident that margins would remain stable because of a shift to higher-end products.
Inexpensive handsets account for 70% of Jay Mart's sales, with higher-priced products the rest.
Mr Adisak said the company was shifting its focus to higher-priced handsets, and said sales trends were bullish thanks to the planned rollout of third-generation mobile services in the near future. Mobile sales, which have a profit margin of 11%, account for 95% of Jay Mart's revenues, while other businesses such as debt collection and retail space management account for the rest.
Mr Adisak said the firm's new businesses offered high margins at around 30%. Debt collection is offered through a subsidiary, JMT Network Services.
Jay Mart currently operates 191 branches nationwide, and plans to expand to 280 within three years.
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