The newly listed restaurant chain Hot Pot expects its revenue to rise by 25-30% this year as a result of expanding its outlet network, part of a strategy to prepare for the advent of the Asean Economic Community in 2015, says chief executive Sakuna Baicharoen.
The international buffet restaurant operator of Hot Pot and Daidomon brands has just finished fund-raising through the stock market, mobilising 286 million baht. Proceeds will be used to expand outlets.
Last year, Hot Pot reported 1.47 billion baht in revenue for a net profit of 39.9 million baht, earning 13 satang a share.
"The expansion of our food outlets will be our main strategy through the next three or four years. Our goal is to open new restaurants in department stores nationwide at a rate of 20-25 outlets a year," said Ms Sakuna.
The company recently opened 12 new outlets.
Ms Sakuna said the plan is to open 12 additional restaurants this year.
As of June 30, the company had 126 branches _ 61 in Bangkok and 65 upcountry.
She said the expansion plan is the company's strategy to prepare for the upcoming AEC in 2015.
The company is in the process of reinventing its image and the decoration of the Daidomon brand, expecting to relaunch in the second half of next year.
"We're studying the potential to expand our network to foreign countries as well, but we've not yet come to a resolution. We also want to make sure we're strong in the domestic market before going abroad," said Ms Sakuna.
The company traded for the first time yesterday on the Market for Alternative Investment (MAI) yesterday for an initial public offering of 101.98 million shares at 2.80 baht apiece.
It has registered capital of 102 million baht for 406 million shares at par value of 25 satang.
Ms Sakuna said listing the company on the MAI helps to lower financial costs and strengthen its capability to expand even more rapidly.
The company's debt-to-equity ratio after listing on the MAI declined to 1.5 times from 1.84 times.
HOTPOT shares closed yesterday at 3.80 baht, up one baht from the IPO price, in trade worth 674 million baht.