Arrow Syndicate Plc, a top-three player in the domestic electrical conduit market, will be the last newly listed company on the Market for Alternative Investment (MAI) this year, with first-day trading set for Dec 25.
The company plans to float 45 million shares for the public and 5 million shares for management and employees. The IPO price is expected at five to six baht a share with a par value of one baht, and the subscription period is Dec 15-17.
Phillip Securities is the financial adviser and lead underwriter.
The funds raised from the IPO will be used for business expansion, including purchase of land and machines, repaying debt and shoring up working capital. After the IPO, the company's paid-up capital will be 200 million baht.
Lerchai Vongchaisit, Arrow's CEO and founder, will hold a 57% stake in the company after the float of shares to the public. His current shareholding is 76.56%.
Managing director Tanin Tan-prawat said the company expects 2012 revenue to exceed 800 million baht, rising to 1 billion baht next year.
For the first nine months of this year, revenue was 586 million baht, close to last year's total revenue. Net profit is 12% of total revenue.
Mr Tanin said net profit could fall slightly next year if raw material prices rise, but the company has a dividend policy of at least 50% of net profit.
The company has little pressure from competition, especially cheap imported galvanised steel conduits, as they are not allowed to enter the market without a standard certificate issued by the state.
Mr Tanin said the nationwide daily minimum wage of 300 baht will not affect production costs, as labour accounts for only 10% of total cost.