SET-listed aviation technology company Sky ICT plans to list its wholly-owned subsidiary Pro Inside on the Stock Exchange of Thailand in early 2024, as it seeks a new long-term revenue stream.
The intelligent system integrator Pro Inside was split from Sky ICT last year to focus on bidding for state projects.
Pro Inside chief executive Benyapa Chalermwat said the company focuses on providing system integration services for security, big data, artificial intelligence-embedded solutions, and smart healthcare.
In 2021, Pro Inside booked total revenue of 674 million baht, with net profit of 87 million baht. Last year its total revenue was 642 million baht, with net profit of 18 million baht.
Ms Benyapa said the lower profit last year was mainly the result of the company's organisational restructuring after separating from its parent.
However, Pro Inside expects its total revenue to soar to 2 billion baht in 2023, driven by its bids for potential contracts with a combined value of 4 billion baht.
The funding from an initial public offering would benefit the company's operations, making it easier to bid for larger projects because of a higher market capitalisation and improved reliability, she said.
Pro Inside plans to submit a listing proposal to the Securities and Exchange Commission by September, said Ms Benyapa.
The company is in talks with several prospective partners in China and aims to sign a memorandum of collaboration with two private companies by the end of this year, she said. One is in the artificial intelligence field and the other specialises in robots.
The partnership should strengthen Pro Inside's business capabilities, said Ms Benyapa.
The partners will create synergies through their collaboration, including research development, product line development and workforce upskilling cooperation, she said.
Digital transformation remains a prominent trend in Thailand, thanks to investment in digital infrastructure by the state and private sectors, especially in big data, cybersecurity development and smart solutions, even as the economy slows.
"Large corporations have continued to invest in digital transformation, while medium-sized firms need to invest in digital if they want to survive," said Ms Benyapa.
Investment in Thailand's infrastructure is still relatively small compared with peer countries, especially Singapore, she said. This indicates Thailand is still in the early phase of infrastructure investment and platforms, aiming to transform itself in the digital era.
Sky ICT chief executive Sithidej Mayalarp said the company has project backlogs worth around 23 billion baht over the next eight years, of which 2 billion would be booked in financial statements this year.
The company booked total consolidated revenue of 820 million baht in the first quarter of 2023, year-on year growth of 75%, with net profit of 83 million baht. The strong performance was attributed to an influx of passenger arrivals as the tourism industry recovered.
Sky ICT provides consultation, design, supply and distribution of products and devices related to ICT, as well as security infrastructure solutions. The company was awarded a 10-year concession worth 8 billion baht by Airports of Thailand to develop aviation platforms. The concession has eight years remaining.