Sunsweet Plc (SUN), a maker of sweet corn, became the year's final company to go public with a listing on the Market for Alternative Investment yesterday, with the closing price settling beneath the initial public offering (IPO) price.
SUN shares opened their first trading day even with the IPO price of 5.85 baht, but they later closed at 5.25 baht, down 60 satang or 10.3%, in trade worth 694.3 million baht.
Sunsweet has paid-up capital of 300 million baht through 130 million newly issued shares with a par value of 0.50 baht each. The company made its IPO at 5.85 baht for a total of 760.5 million baht.
Asset Pro Management is the company's financial adviser, while Phillip Securities Thailand is the lead underwriter alongside eight co-underwriters.
Sunsweet chief executive Ongart Kittikhunchai said the lower closing price may have resulted from the upcoming long weekend, with investors scaling back on risk for the period.
Mr Ongart said the IPO price of 5.85 baht per share was not so expensive relative to the company's fundamentals, with most shares having sold out during the IPO period of Dec 20-22.
With a price-to-earnings ratio of 18, the company's P/E is still lower than the overall food industry's 20, he said.
Sunsweet has been in the industry for more than 30 years. The company uses technology to make food, especially sweet corn, to international standards. It also works in contract farming to manage material costs and product quality.
Sales growth is expected to reach 10% next year, while net profit growth is tipped to rise to a double-digit figure from this year's 8%, due to lower interest expense and reduced operating costs.
"The company will disclose its performance for this year in the next two months, so that investors will recognise the company's business performance and future growth opportunity," Mr Ongart said.
Sunsweet's three major shareholders after the IPO are the Sae Lim Family (69.77%), Pamorn Polthep (0.47%) and Phillip Securities Pte Ltd-A/C Clients (0.47%).
Vicha Tomana, managing director at Phillip Securities, said Sunsweet will have sustainable growth through its food operations and is not a speculative stock.
SET president Kesara Manchusree (centre) congratulates executives on TREIT's first trading day: Peerapat Srisukont (third from right), managing director of Ticon Management Co; Virapan Pulges (second from right), chief executive of Ticon Industrial Connection Plc; and Sopon Racharaksa (far right), president of Ticon Industrial Connection.
"SUN's share price closed lower than the IPO price yesterday, deriving from investors' uncertainty about the company's growth potential, but they will understand after the company shows its 2017 business performance and the upcoming quarter," Mr Vicha said.
Meanwhile, the Stock Exchange of Thailand (SET) yesterday listed an additional trust unit of Ticon Freehold and Leasehold Real Estate Investment Trust (TREIT) after finishing the conversion process of three property funds, becoming the biggest industrial REIT in Thailand.
TREIT has successfully received the transfer of assets and liabilities from three property funds, namely Ticon Property Fund, Ticon Industrial Growth Leasehold Property Fund and Tpark Logistics Property Fund.
The conversion drives TREIT's total combined assets to 30.65 billion baht as of Sept 30.
TREIT has invested in freehold rights and leasehold rights of land, warehouses and factories, with the remaining lease contract rights of 26 years. The tenants are Thai companies and multinational firms.
TREIT assets consist of 192 warehouses and 300 factories in an area of over 1 million sq m in the Eastern Economic Corridor.
Ticon Management Co Ltd is the REIT manager, BBL Asset Management Co Ltd is the trustee, and Phatra Securities Plc is the financial adviser.
TREIT shares opened their first trading day on the SET at 10.40 baht, above the IPO price of 9.90 baht, and closed at 10.50 baht, up 60 satang or 6%, in trade worth 65.6 million baht.