Villa Kunalai fixes spotlight on Nonthaburi
Property developer Villa Kunalai Plc plans to keep its focus on the mid-level housing segment in Nonthaburi as demand is robust.
It wants to use proceeds available from its initial public offering (IPO) to buy new plots in Nonthaburi province for future development.
Chief executive Praweerat Dheva-aksorn said Nonthaburi is the most attractive living area neighbouring Bangkok.
"Nonthaburi supports the majority of housing demand in Bangkok as housing prices are more affordable. Locations are very close to the city and feature completed infrastructures. The province continues to grow every year," she said.
The company is scheduled to kick off a subscription for its IPO shares from today until Dec 6, priced at 1.10 baht apiece. The first trading day on the Market of Alternative Investment is scheduled for Dec 17.
Yesterday the company appointed Asia Wealth Securities as a lead underwriter, with KTB Securities (Thailand) and ASL Securities as co-underwriters to allocate 150 million shares with a par value of 0.50 baht each, equivalent to 25% of the company's total issued shares after IPO.
Using the ticker KUN, the company plans to raise 165 million baht from IPO, which will be spent on loan repayment and internal cash flow at around 60 million baht each. Some 30 million baht will be a deposit for a plot in Nonthaburi's Bang Bua Thong district.
The company has plots that total 200 rai from a 300-rai bank in Bang Bua Thong for future development of single houses, duplex houses and townhouses scheduled over seven years.
"We always focus on unit prices between 2-6 million baht as demand in this segment in Bang Bua Thong is robust," said Mrs Praweerat.
Kunalai diversified risk by buying a 25-rai plot at Chachoengsao to develop housing units priced 2 million baht.
During the first nine months this year, it recorded 461 million baht in revenue with a net profit of 43 million, topping its revenue in 2018 of 448 million.