Platinum Group, operator of the fashion wholesale mall of the same name, plans to list on the Stock Exchange of Thailand this month in a bid to raise 8 billion baht for new investment.
President Somboon Wongrasamee said its popular wholesale mall in Bangkok's Pratunam area would issue 700 million new shares in an initial public offering (IPO). The IPO shares will undergo the book-building process this week for distribution in mid-March.
Trading on the SET is expected at the end of this month under the symbol PLAT.
Mr Somboon said proceeds from the IPO would be used for financing The Market by Platinum, a leasehold retail project on 20 rai near Big C Ratchadamri. It is scheduled to be finished in early 2017, costing about 7 billion baht. In addition, it will spend 300 million baht to build a skywalk, due to be completed in two years, connecting its Platinum building with high-end mall Gaysorn.
The group is also planning to build a 1.25-billion-baht hotel on Koh Samui, to be completed within two years.
The funds raised from the IPO will not cover the overall investment value, Mr Somboon said.
He said the group targeted revenue growth of at least 5% per year. For 2014, it expects to record revenue of 1.2 billion baht, with 65% rent from the mall, 20% from hotel business and 15% from food.
The Market by Platinum is three times bigger than Platinum Mall and expected to take in 1 billion baht a year in revenue.
Me Somboon said Platinum Fashion Mall would maintain its position as a leading wholesale fashion market because it attracted both Thais and foreigners.
"There are not many wholesale operators in Thailand, so the company will expand to upcountry branches to take advantage of long-term market growth opportunities," said Mr Somboon.
Platinum recently signed a contract to rent out a mall on Koh Samui, its first outside Bangkok, and if it performs well the company will expand to other areas.
Mr Somboon said political protests were an unpredictable risk factor for retail business in Bangkok, more so than the economic slowdown.