CIVIL share price closed at 4.92 baht, up 0.32 baht (+6.96% %) from the IPO price of 4.60 baht, trading value 1,324.90 million baht from the opening price of 5.25 baht, the highest price up to 5.25 baht, the lowest price 4.74 baht.
TISCO Securities stated in the analysis that From the preliminary estimates, the stock Civil Engineering Public Company Limited (CIVIL) has an appropriate value in year 65 at 6.4 baht (based on companies in the industry with similar business practices in the past 3 years at P/E 19 times) from the backlog of more than 12.7 billion baht and the work pending contract or the work that the company won the auction for another 4.14 billion baht, which will help support the company’s revenue until 2024. The work that has not yet been Delivered on September 30, 2021
There is also a good trend from the government’s bidding for more projects this year, including highway expansion projects, various electric trains, double-track railways, high-speed trains. and various airport expansion projects to stimulate the economy after the outbreak of COVID-19 In addition, the company’s market entry will enhance the bargaining power in cooperation with other companies. or auction
The company also plans to expand its client portfolio to more corporate clients, which will boost its profit margins in the future. The key risk factor for CIVIL is the intense competition in the industry, which can put pressure on its earnings. (If the auction can not be done) and the profit margin of the company in the future (due to price competition), the construction may be delayed causing the construction cost to pressure margins and the cost of construction materials may increase.
For the number of IPO shares 200 million shares, representing 28.57% of the total shares. Offering value 920 million baht. Objectives for using the money. 1. Funds for additional investment in machinery and equipment used in construction projects 530 million baht 2. Repayment of loans from financial institutions 265 million baht and 3. Working capital for business operations.