AI Energy (AIE), an alternative energy producer, offered a 20% discount on its initial public offering (IPO) price of 4.75 baht amid unfavourable stock market sentiment prompted by the political deadlock.
"We are selling the IPO at 4.75 baht per unit, with a 20% discount to shareholders. Our stock was received warmly at road shows, as the alternative energy business has high growth potential, in particular the biodiesel business," said managing director Anurag Thareratanavibool.
Yesterday the company signed agreements to appoint lead underwriters and underwriters for its 445 million IPO shares at one baht par value. Of the total, 170 million are newly issued shares and the remaining 275 million are existing shares held by the company's major shareholders.
The subscription period for 250 million shares to be allocated to shareholders of Asian Insulators (AI), AIE's parent firm, is set for Dec 19 and 20, while the subscription period for the 195 million shares earmarked for the public is Dec 23 and 24. The stock is expected to debut on the Market for Alternative Investment on Jan 6.
AIE is a leading biodiesel manufacturer and a crude palm oil refiner to make vegetable oil.
Proceeds from the share offering will be used to expand its business and improve machinery, raising daily production capacity to 550,000 litres from 400,000 litres next year. The remainder will be reserved as working capital.
The political protests have not affected the company, he said.
AIE aims for revenue of 4.2 billion baht this year, rising to 5 billion next year thanks to rising demand for vegetable oil and biodiesel.
Mr Anurag said 70% of the company's output is biodiesel and 30% is vegetable oil.
The company's gross profit margin is expected at 5% next year, similar to this year, he said.
AI's shares closed unchanged yesterday on the SET at 14.30 baht in trade of 19.5 million baht.