Kerry Express (KEX), the express delivery operator, announced its IPO price range at 25-28 baht, expected to be traded on the Stock Exchange of Thailand (SET) by the fourth week of December.
Veena Lertnimitr, executive vice-president for investment banking function and KEX's financial adviser, said the Securities and Exchange Commission has approved KEX's IPO application, which became effective on Tuesday, with the initial price range set at 25-28 baht.
The final price is expected to be announced on Dec 15.
Subscriptions will be available for retail investors during Dec 8-9 and 14, and for institutional investors during Dec 16-18.
KEX's shares will be listed on the SET in the fourth week of December.
She said KEX is offering 300 million shares for the IPO, which would result in a total offering size of approximately 7.5-8.4 billion baht. The funds from the IPO will be used to expand KEX's network, enhance operating efficiency and repay existing debt to banks and working capital.
Prasert Tantayawit, managing director for the investment banking department at Maybank Kim Eng Securities Thailand, another joint financial adviser and joint lead underwriter for the IPO, said he is confident in KEX's IPO as the investment is backed by the company's leading market position, its solid business model and structural growth prospects.
KEX has already received strong support from institutional investors, with the cornerstone tranche being oversubscribed ten times over the number of shares available in the cornerstone placing portion, said Ms Veena.
Alex Ng, chief executive of KEX, said high demand for KEX's IPO reflects the company's performance as the volume of delivered parcels grew by over 134.9% over 2014-19, a substantive rate given that Thailand's e-commerce to retail penetration rate is still immature.
The growth of e-commerce businesses and the emergence of a new normal lifestyle propelled these results, as customers prefer to order goods through online channels. The company has average delivery parcels of around 1.2 million pieces per day, four times higher than the second market leader.
KEX has more than 15,000 service points, 1,200 distribution centres and more than 18,000 employees, he said.
The company reported its net profit for 2019 at 1.33 billion baht, up 12% from the year before, and 738 million baht in the first half of 2020, up 36% from the same period last year.