The MAI-listed Eureka Design Plc (EUREKA) is negotiating with three potential foreign strategic partners to strengthen its product distribution network as part of its goal to maintain annual 30% revenue growth.
Narakorn Ratchapolsitte, chief executive of the designer and manufacturer of automotive machinery, said the company is in talks with auto companies from Germany, Japan and Britain.
"We're seeking strategic partners that have the capability to sharpen our competitiveness in technology and sales distribution," he said.
Eureka's share price, on its debut on the Market for Alternative Investment yesterday, surged 200% above its initial public offering (IPO) price to close at 6.75 baht, with a trading value of 354 million baht, indicating a strong investor appetite.
The automotive industry's promising outlook also gave a boost to Eureka's share price. Output in Thailand is expected to reach 2.5 million vehicles this year.
After its IPO, Eureka has paid-up capital of 85 million baht at a par value of 50 satang.
The company floated 50 million shares through the IPO from Feb 18-20 at 2.25 baht a share, raising 112.5 million baht.
Proceeds are being used to invest in new technology to increase the efficiency of design services and machine production. Some money will be reserved for working capital to support expansion.
The firm's main customers are leading manufacturers such as Toyota, Honda, Yamaha, Isuzu, Suzuki and Mitsubishi, plus major auto-parts makers.
Mr Narakorn said his group will remain the company's major shareholder, with a stake of at least 61%.
Eureka designs and produces assembly and testing machines.
MAI president Chanitr Charnchainarong said Eureka is the market's third new listing this year.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter