Cho Thavee Dollasien (CTV-Doll) plans to allocate 200 million shares through an initial public offering (IPO) in the second quarter in a bid for a listing on the Market for Alternative Investment.
"Proceeds will be used to fund business expansion and prepare to take advantage of greater opportunities in the logistics sector, which will grow rapidly under the Asean Economic Community," said Suradech Thaveesaengsakulthai, chief executive of the manufacturer and supplier of trailers, semi-trailers and truck bodies.
On completion of the IPO, total shares will be raised to 720 million from 520 million at a par value of 25 satang each.
The IPO shares will account for 27.78% of the total.
The company is a joint venture between Thailand's Khon Kaen Cho Thavee (1993) Co and Germany's Doll Fahrzeugbau AG.
Its products and services include airport ground handling, full- and semi-trailer bodies, truck bodies, special trailers and spare parts.
In a filing with the Securities and Exchange Commission, CTV-Doll said it will spend 20 million baht of the proceeds through 2015 to develop its commercial automation, 40 million this year to expand fibreglass manufacturing and 30 million next year to build a polyurethane foam insulation factory.
Whatever is left over will be used as working capital, but the filing did not elaborate on the fund-raising size.
CTV-Doll expects revenue growth of 20% this year, driven largely by government logistics investment and international business. Logistics projects will account for a major part of the government's 2 trillion baht in infrastructure spending over seven years.
The company also plans to join in bidding held by the State Railway of Thailand for 50 locomotives this year.
Mr Suradech said the company's international business prospects look promising, as some Middle East countries plan to expand their airports.
Earlier, the company submitted a bid for an airport expansion project worth US$10 million in the Middle East, with the outcome to be announced mid-year.
CTV-Doll achieved revenue of 706 million baht last year, up from 702 million in 2011 and 691 million in 2010.
Net profit was 20 million baht, down from 24 million in 2011 due to effects from the flood crisis.
International and domestic operations each make up half the total.
About the author
- Writer: Darana Chudasri
Position: Business Reporter