Dexon targets overseas expansion

Dexon targets overseas expansion

Pipeline inspector raising funds via IPO

Ms Mallika says Dexon plans to expand to the US and European markets.
Ms Mallika says Dexon plans to expand to the US and European markets.

Dexon Technology, a Thai pipeline inspection company, is planning to expand its business to the US and Europe by using proceeds from its listing on the stock market later this month.

The company appointed Phillip Securities as an underwriter for the offering of 123.18 million shares in its initial public offering (IPO) on the Market for Alternative Investment at the end of March.

The share price is set at 4.50 baht apiece.

Dexon aims to mobilise 120 million baht in funds for expansion in international markets, including the US and the Netherlands.

The company provides pipeline inspection services, including smart pigging technology, the company's innovation that is used to detect small cracks in pipelines.

Chief executive Mallika Kaekla said petroleum, oil and gas businesses in the US and Europe are still performing solidly despite ongoing economic issues in the regions.

"The impact of economic crises is affecting other industries that are outside the company's focused investments. Pipeline owners are proceeding with their business plans," she said.

"The company will continue to follow our expansion plans in these markets after the fundraising."

Martin Stuvik, chairman of the executive committee, said investment in international markets is a strategic action that will yield long-term results.

"It's not about serving the demands for tomorrow or today, but for the next five to ten years. We are entering the US market with partners that are some of the largest energy companies in the world," said Mr Stuvik.

"We feel confident that Dexon's investment into large markets is going to be successful."

Other than market expansion, the company also plans to use 60 million baht raised from the IPO for R&D, which is the main focus of the business.

The remainder of the funds raised will be used for debt repayment and working capital.

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