(Additional) World Flex knocks IPO price at 7.20 baht/share, open for reservation 9-13, 15-17

Mr. Rattachai Thirathanawat, Co-Chief Executive Officer Investment Banking – Capital Market KTBST Securities as a financial advisor and the underwriter and underwriter of the sale of newly issued ordinary shares to the general public (IPO) of World Flex Public Company Limited (WFX) revealed that WFX has set the IPO selling price at 7.20 baht per share based on a price survey. According to the demand to buy with institutional investors (Book Building) in the price range of 7.00-7.20 baht / share, which institutional investors expressed interest in the highest price of 7.20 baht / share, causing the company to knock on the IPO price.

“The IPO price is considered a reasonable price and there is a discount from the average price at the brokerage. Keep the target of about 30%, which is considered an attractive IPO price and consistent with the company’s growth and dividend stocks,” said Mr. Rattachai.

For the IPO of World Flex Public Company Limited, all 142 million shares or 30.59% of the paid-up capital after the IPO will be allocated to the shareholders of TRUBB in the amount of not more than 11.36 million shares. to the directors Executives and employees of the Company not exceeding 14.20 million shares, offered for sale to the Company’s patrons not more than 18.46 million shares and offered to persons at the discretion of the underwriters in the amount of not less than 97.98 million shares.

The allocation of the IPO will be divided into 2 periods, namely, to the existing shareholders of Thai Rubber Latex Group Public Company Limited (TRUBB), which is a major shareholder, on 9-13 Dec. 20 and the offering to individuals at the discretion of the distributor and to the shareholders. Company’s patronage including directors Executives and employees of the company on December 15-17, ’64 and expected to be listed on the Stock Exchange of Thailand for the first day at the end of December. 64 or before Christmas

For the money received from this fundraising The company plans to expand the rubber yarn factory in the amount of 350 million baht, pay off 400 million baht in loans to financial institutions, and use it as working capital of 248.12 million baht in the business.

Mr. Nat Wongsasuthikul, Managing Director of WFX revealed that after raising funds in the Stock Exchange of Thailand This is to create opportunities for growth and increase the potential of the company. In particular, the proceeds will be used to expand the production capacity of the new 2-phase elastic yarn totaling 12,400 tons/year from the current production capacity with a total production capacity of 35,000 tons/year, with the new production capacity divided into the first phase of 6,200 tons/year. Year It will begin commercial production in the middle of the year ’66 and Phase 2 with a capacity of 6,200 tons / year will begin commercial production in the late ’66, allowing the company to support more customer orders. and enabling the company to maintain an average sales growth of 15% per year.

At present, the company sees that there are many opportunities to expand the market of elastic yarn. From the current global demand for elastic yarn is up to 200,000 tons, although there are many elastic yarn operators in the world. But only a few countries are the market leaders with the most market share, including the leading companies with the highest market share. It has the potential to support more orders from customers. As a result, the company still has many opportunities to expand the growth of its operating performance.

In addition, using the proceeds from the IPO to pay off high-interest short-term loans. This allows the company to significantly reduce interest expenses. And causing the company’s debt to equity (D/E) ratio to drop to 0.3 times from the current 1.12 times, the company’s debt burden is reduced. including effective stock and currency management This enables the company to control costs effectively.

Mr. Chawalit Tiyadechachai, Chief Executive Officer of WFX, said that the fundraising and listing on the stock exchange will enhance the company’s growth potential by expanding into new markets under its strengths over its competitors. Whether it is the advantage of a variety of products cover all sizes meet the needs of customers on the spot

It also has the advantage of accessing raw materials. because the company’s manufacturing plant is in Thailand Which is the world’s No. 1 producer of concentrated latex, is the main raw material for producing elastic yarn. including having TRUBB, one of the latex producers in Thailand, is a major shareholder. Helping companies access quality raw materials in required quantities As a result, the company is confident that the operating performance trend in the next 1-3 years will grow strongly.



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