Home Product Center Plc (HMPRO), operator of the HomePro chain, plans to issue debentures worth 4-5 billion baht to raise funds for branch expansion.
Wannee Juntamongkol, a senior vice-president, said the company will spend up to 10 billion baht this year, twice as much as last year, to add hardware and home-improvement stores across the country.
Half the spending will be funded by proceeds from the new debentures of 3-5 years' maturity to be issued in the second or third quarter.
The remaining funding will come from the company's cash flow.
HomePro last year reported revenue of 37 billion baht, up from 30.5 billion in 2011, for a net profit of 2.67 billion, up from 2 billion.
The company expects revenue growth of 15% this year.
Plans call for opening nine HomePro hardware stores nationwide this year _ one in Greater Bangkok and eight upcountry.
The company opened a Chanthaburi branch early last month, while a branch in Chumphon will open by the end of this month.
There will be 62 stores by year-end, up from 53 in 2012.
"Each branch costs 500 million baht to open," said Ms Wannee.
In related news, the company plans to have three Mega Home stores offering wholesale and retail construction materials this year.
HomePro recently set up a subsidiary called Mega Home Center with registered capital of 100 million baht to run Mega Home stores.
Mega Home targets project owners, shops, homeowners and general customers.
Its business model is similar to that of the Siam Cement Group's Global House and Central Retail Corporation's Thai Watsadu.
Each Mega Home store will have 15,000 to 20,000 square metres of space and require an investment of 500 million baht to set up.
The first will open in Pathum Thani's Nava Nakorn Industrial Estate in the fourth quarter, while the other two will be upcountry.
HomePro earlier said it expected to have 20 Mega Home stores within four years, generating combined annual sales of 14 billion baht.
Ms Wannee said the company is working on opening its first foreign branch in Malaysia.
The Kuala Lumpur outlet will open next year and generate annual revenue of 700 million baht.
Details of the company's plan to set up a property fund worth 3-5 billion baht are to be disclosed in the second half of this year, with a launch set for 2014.
Shares of HMPRO closed yesterday on the Stock Exchange of Thailand at 16.20 baht, up 20 satang, in trade worth 358 million baht.
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Writer: Piyachart Maikaew