Ananda Development Plc hopes to raise US$200-250 million (6 billion to 7.5 billion baht) from its planned listing on the Stock Exchange of Thailand by early next month.
Chanond: Good deal to buy back shares
The first in three years for the SET's property sector, the listing will also be a first under the new market capitalisation rule, which allows companies with market capitalisation of 5 billion baht to list despite their losses over the past 2-3 years.
Ananda's initial public offering is said to be the second largest after the Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, which mobilised $600 million in March.
Chanond Ruangkritya, president and CEO of Ananda, said the company has already filed its listing application to the Securities and Exchange Commission.
It expects to float 1.33 billion shares with par value of 10 satang to the public late this month.
The share float represents 35% to 40% of the company's total shares.
Bualuang Securities is its financial adviser.
A local roadshow will start this week, followed by international roadshows in Hong Kong, Singapore, London and Amsterdam.
Presently, Ananda has paid-up capital of 200 million baht, to be increased to 333.3 million baht after the IPO.
"We believe we can attract strong interest from foreign funds to invest with us. We want to sell half of the IPO shares to foreign investors," he said.
The proceeds from the IPO will be used to invest in future property projects and repay existing debts worth 2.5 billion baht owed to Krung Thai Bank (KTB).
Ananda borrowed 4.8 billion baht from the state bank to buy back a 95% stake in Ananda Development Two (AD2) from its foreign partner, Pramarica Real Estate Investor Asia, in late 2010.
AD2 is now developing 12 city condominium projects along the mass transit routes in Bangkok.
Another 1 billion baht of the fresh funds will be used to buy back a 48.26% stake in Ananda Development One (ADO) from TMW Ananda GmbH, the investment arm of Pramarica.
Ananda and TMW have co-developed a number of housing projects around Suvarnabhumi Airport since 2006.
The payment to TMW will be made in four instalments from Dec 31 this year to mid-2014.
After this, ADO and AD2 will become wholly owned subsidiaries of Ananda and Pramarica will successfully exit the Thai real estate industry.
"We got a very good deal from TMW as the book value of housing assets is 2.6 billion baht," Mr Chanond said.
Ananda was established in 1999 and controlled by the Ruangkritya family. The developer is now focusing on developing condominium projects under the Ideo brand within a radius of 100-300 metres from mass transit stations.
CFO Muntana Aue-Kitkarjirn said Ananda now has a backlog worth 7 billion baht from condominiums, which could be realised until 2014.
Revenue from the housing projects under ADO will be booked in the company's balance sheet from 2013 to 2015.
Last year, Ananda posted a net loss of 317.3 million baht on revenue totalling 5.68 billion baht. In the first half of this year, it recorded a net loss of 274.37 million baht on total revenue of 2.16 billion baht.
Its assets stood at 8.3 billion baht while liabilities were 8.7 billion baht.
Mr Chanond said the company planned to introduce a new condo brand for projects located around 300-600 metres from mass transit stations in the first quarter of next year, priced at 1-2 million baht per unit.
It also plans to develop low-rise residential projects in suburban areas with easy access to the mass transit systems in the near future.
Ananda claims to be the No. 1 developer of city condominiums located near mass transit lines, with 7,700 units in total now.
About the author
- Writer: Krissana Parnsoonthorn