Communication and System Solution Plc (CSS) plans to go public by allocating 200 million initial public offering (IPO) shares for construction of a new warehouse and office building.
The company expects to launch the IPO and start trading on the Stock Exchange of Thailand by early September, said Sompong Kangsawiwat, chief executive of the distributor of electrical products and service provider of telecommunications solutions.
Triple A Plus Advisory is the financial adviser, while Finansia Syrus Securities serves as lead underwriter.
The IPO shares represent a 28.6% stake of CSS's registered capital of 700 million shares at a par value of 50 satang.
"We want to raise funds for to expand our telecommunications business. We're already one of the leading telecom system installers," Mr Sompong said.
He said the telecom business has a higher gross margin than the trading sector but also requires more capital.
Telecom equipment installation contributes about 20% of company revenue, while trading makes up the rest.
CSS's growth as a telecom service provider has doubled since the telecom regulator issued licences for third-generation mobile service, while trading business has expanded by 20-30%.
Last year, the company achieved revenue of 3.3 billion baht, up from 2.34 billion in 2011, for a net profit of 158 million, up from 40.4 million.
For this year's first quarter, it recorded revenue of 841 million baht for a net profit of 44.2 million.
Mr Sompong said revenue from telecom service may contribute 25% in the near future thanks to its rapid growth.
In the fourth quarter, CSS will join four other companies to install telecommunications poles in Myanmar.
About the author
- Writer: Darana Chudasri
Position: Business Reporter