mai welcomes concrete manufacturer & distributor “YONG” on August 2

Bangkok, Market for Alternative Investment (mai) will list Yong

Concrete pcl, a manufacturer and distributor of precast and ready-mixed

concrete products with prefabricated structure installation services, on August

2, under the ticker symbol “YONG”. The company has a market capitalization at

its initial public offering (IPO) of THB 1.70 billion (approx. USD 46.31

million).

mai President Prapan Charoenprawatt said that YONG would list and start trading

on mai in the Property & Construction industry group.

YONG and subsidiaries manufacture and distribute precast and ready-mix concrete

products, as well as providing prefabricated structure installation services,

under the trademark “YONG”. The group of companies’ products and services can be

categorized into three types as follows: 1. One-stop precast concrete product

manufacturing and distribution business, including beam structures, poles,

precast walls, piles and precast concrete fences, 2. Ready-mixed concrete

product manufacturing and distribution business; and 3. Transport service

business, operated by its 100 percent-owned subsidiary, Prom Transport Co.,

Ltd., with seven factories for precast concrete products and/or ready-mixed

concrete in Kanchanaburi, Nakhon Pathom and Chonburi provinces. For the first

three months of 2022, the group’s revenue ratio of precast concrete products :

ready-mixed concrete products : transport business and other businesses is

approximately 83 : 13 : 4, completely equipped with all distribution channels

for customers’ projects from both private and government sectors.

YONG has a registered paid-up capital of THB 340 million, consisting of 500

million existing ordinary shares and 180 million newly issued shares, with a par

value of THB 0.50 each. Of the total newly issued shares, it offered not less

than 165 million shares to persons at the underwriter’s discretion and

institutional investors, up to 5 million shares to the company’s benefactors,

and up to 10 million shares to the company’s directors, executives and

employees, during July 21-22 and 25 at THB 2.50 each, for a total of THB 450

million. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of

26.10 times. The earnings per share is equal to THB 0.10, which was calculated

from the company’s net profit of THB 65.14 million in the past 12 months (April

1, 2021 – March 31, 2022), divided by fully diluted shares. Finnex Advisory Co.,

Ltd. is its financial advisor and Asia Wealth Securities Co., Ltd. is the lead

underwriter.

YONG Managing Director Sunpetch Slisatakorn said that the company has over 30

years of experience in manufacturing concrete products, equipped with teams of

engineers who are knowledgeable and capable in production and quality control,

ready to keep the customers well-informed and provide advice from end-to-end,

starting from design, production, to installation. In addition, the company can

produce a wide range of precast concrete products, enabling the order of large

quantities of raw materials and effective negotiation with raw material

suppliers, resulting in the benefits from economies of scale. The fund raised

will be used to invest in the construction of a factory at Bang Len district,

Nakhon Pathom province (west of Bangkok) to expand production capacity and

develop related systems; to invest in the construction of a ready-mixed concrete

plant at Bang Yai district, Nonthaburi province; to repay loans to financial

institutions, and as working capital for business operations.

YONG’s largest shareholder after the IPO is Slisatakorn family (72.76 percent).

The company’s dividend policy is to pay no less than 40 percent of net profit

from the company’s separate financial statement after corporate income tax and

all types of reserves as specified by law and the company’s regulations.

Source: The Stock Exchange of Thailand

Post Author: tmadmin