OfficeMate, the catalogue and online office supply company, is considering increasing its free float to stimulate share trading liquidity.
The company recently announced it would issue 240 million new common shares at 37.50 baht each to Central Retail Corporation (CRC), which will become the new major shareholder with a 75% stake.
Worawoot Ounjai, founder and managing director of OfficeMate, said that as a result of the deal, free float share for retail investors may be lower than 10%, or less than the minimum regulatory requirement.
Therefore, the company's major shareholders may sell some of their shares to institutional or retail investors. The MAI-listed company has more than 900 retail shareholders.
"Many institutional investors have expressed interest in whether, with the company's assets growing, it may move from the Market for Alternative Investment to the SET," said Mr Worawoot.
OfficeMate expects to fulfil the plan this year.
The company has also revised up its revenue growth target from 28% to 32%, in line with last-quarter revenue that is expected to rise more than 50%.
The company had full-year revenue of 1.27 billion baht in 2011. For the first nine months this year, it reported total revenue of 1.28 billion baht and a net profit of 53 million baht.
The company's revenue growth target is at least 20% for each of the next three years after its merger with CRC. Gross margin is expected to rise from 24% now to 27% with the strong brand and marketing network of CRC.
OFM shares closed yesterday at 55.50 baht, up one baht, in trade worth 15.14 million baht.
About the author
- Writer: Darana Chudasri
Position: Business Reporter