BANGKOK, February 22, 2017 – Market for Alternative Investment (mai) will list
Megachem (Thailand) pcl, a distributor of specialty chemicals, on February 23,
under the ticker symbol “MGT”. The company has a market capitalization at its
initial public offering (IPO) of THB 756 million (approximately USD 21.6
million).
mai President Prapan Charoenprawatt said that MGT would list and start trading
on mai in the Industrials industry group. MGT distributes a wide range of
specialty chemicals for over 1,000 products from more than 400
makers/distributors to cover customers in many industries such as
polymerization, paint, and metal finishing industries, and others. The company
has an associate company, Vertis Latex Co., Ltd which is a latex pillow and
mattress producer, an original equipment manufacturer or OEM company catering to
various customers.
MGT has a paid-up registered capital of THB 200 million, consisting of 300
million existing common shares and 100 million newly issued shares with a par
value of THB 0.50. During February 15-17, it offered newly issued shares to the
general public via IPO at THB 1.89 each, for a total of THB 189 million. Capital
Nomura Securities pcl is the financial advisor and underwriter.
MGT Chief Executive Officer Vitthaya Inala said that the company sells the
specialty chemicals used as additives in industrial processes and can meet
customers’ demand in both features and prices. MGT also provides ordering
services of specialty chemicals services and logistic services to match each
customer’s requirements. The fund raised would be used to set up branches in
Cambodia, Myanmar and Thailand, and as working capital to fulfill the company’s
goals.
MGT’s three major shareholders after the IPO are Vitthaya Inala (37.68 percent),
SGX-listed Megachem Limited (36.19 percent) and Akechonsith Woraharn by KTB
Securities (Thailand) Co., Ltd. (1.25 percent). The IPO price was equivalent to
price-to-earnings ratio (P/E ratio) of 23.86 times calculated by using the
company’s net profit in the past four quarters (October 1, 2015-September 30,
2016) of THB 31.69 million, divided by fully diluted shares, representing
earnings per share of THB 0.08. MGT’s dividend policy is to pay no less than 40
percent of net profits after taxes and reserves.
For more information on MGT, please see the company’s prospectus at the
Securities and Exchange Commission’s website at www.sec.or.th; and general
Information.
Source: The Stock Exchange of Thailand
