Sanko Diecasting (Thailand), the maker of high-pressure die-cast components for the automotive industry, plans to list on the Market for Alternative Investment in the second quarter to raise funds for business growth.
Sanko, with paid-up capital of 88 million baht, has three major shareholders _ JTW Asset (50.35%), Vnet Capital (27.95%) and Masami Katsumoto (21.25%).
The company plans to boost its capital to 110 million baht with the float of 44 million new shares at 50 satang par value. Capital Nomura Securities is the financial adviser for the listing.
Sanko operates a factory on nine rai at Rayong's Rojana Industrial Estate.
The company produces aluminium and zinc high-pressure die-cast components used in automobiles, motorcycles, electric goods and farm machinery.
Deputy managing director Rattawat Suksaichol said the company has grown in line with the local auto parts industry.
The strong gains in the Thai stock market over the past year also make it a good time to tap the market, he said.
"This is a good opportunity for a small company such as Sanko to raise funds from the stock market, which will help us to reduce our funding costs and gain credibility in the market," Mr Rattawat said.
Funds raised from the initial public offering will be used for new land and machinery under a 46-million-baht investment plan.
Last year, Sanko reported nine-month revenue of 364 million baht, on par with revenue for all of 2011.
Net profit for the nine months was 14.8 million baht compared with a net loss of 1.03 million in 2011.
The company wants to boost its net profit margins, at 3-5% in recent years, by developing its auto-parts brand.
Major shareholder JTW Asset is owned by Pira Patamavorakulchai, founder of both the Pinthong Group and Jutha Wan Metal Co.
The Pinthong Group covers 23 companies across four business units _ steel and metal, industrial parts, real estate and warehouses, and transportation and car rentals.