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Samart Aviation Solutions Announces IPO Price and Allocation Details

Samart Aviation Solutions Public Company Announces Share Price for Initial Public Offering

Company Sets IPO Price at 19.00 Baht Per Share, Total Offering Value of 3,154 Million Baht

In a recent announcement, Samart Aviation Solutions Public Company Limited (SAV) revealed the price for its upcoming initial public offering (IPO). The company has set the price for 166 million ordinary shares at 19.00 baht per share, with a total offering value of 3,154 million baht. This offering will be divided into shares, including 64,000,000 shares representing 10% of the paid-up registered capital after the IPO and existing ordinary shares, as well as share allocation over 102,000,000 shares, accounting for 15.94%.

As part of the IPO, SAV plans to allocate 11,742,548 shares, or 7.07% of the number of ordinary shares, to existing shareholders. Samart Corporation Public Company Limited (SAMART) will have the right to receive an allocation of shares between September 13th and 15th. Additionally, SAV will offer no more than 3,000,000 shares, or 1.81% of the total, to the company’s credit shareholders. The remaining 151,257,452 shares, or 91.12%, will be offered to individuals at the discretion of underwriters and/or institutional investors between September 15th and 18th-20th.

The price of ordinary shares offered for sale during this IPO is determined based on a survey of the demand for buying securities, known as Book Building. This method involves asking institutional investors about their desired amount of common shares at different price levels. After receiving this information, the underwriter and underwriter will determine the price and number of shares to be subscribed to by institutional investors.

When setting the IPO share price at 19.00 baht per share, SAV considered the net profit from the company’s financial statements over the last 12 months. With a net profit of 267.46 million baht during this period and a total of 640,000,000 ordinary shares (Fully Diluted), the company arrived at a net profit per share of 0.42 baht. The price to earnings ratio (P/E) is approximately 46.66 times, based on the net earnings per share.

Speaking about the company, Mr. Teerachai Phongphanangam, President of SAV, highlighted that SAV is the sole provider of air traffic control services in Cambodia’s airspace. Operating under a long-term concession contract with a duration of over 28 years, the company benefits from clear pricing and revenue sharing. SAV has significant growth opportunities as it serves as the aviation hub of Southeast Asia with high growth rates.

SAV has appointed Asia Plus Securities and Krungsri Securities as joint lead underwriters for the IPO share offering. Additionally, 8 other distributors and joint underwriters, including AIRA, CGS-C Securities, IMB (Thailand), Dao Securities (Thailand), Kingsford Securities, Krungthai Xspring Securities, Maybank Securities (Thailand), Trinity Securities, and Finansia Syrus Securities, will be involved in the offering.

Mr. Prasert Tantayawit, Managing Director of Asia Plus Advisory Co., Ltd., SAV’s financial advisor, stated that the IPO shares are being offered at a price of 19 baht per share, which is considered appropriate and represents a discount of around 25-30% compared to the average price given by analysts. SAV has a dividend payment policy of up to 50% of net profit, and the company’s board of directors recently approved an interim payment plan at a rate of 0.75 baht per share. Institutional investors have expressed strong interest in subscribing to SAV shares, and it is anticipated that approximately 50% of the total number of IPO shares will be allocated to them.

The funds raised from the IPO will serve as internal working capital, amounting to 376 million baht by 2026. Additionally, the company plans to repay debts with financial institutions totaling 840 million baht in the fourth quarter of 2023. SAV has a loan contract with a credit limit of USD 66,265,000 for a duration of 7 years, with principal and interest paid every 3 months. The loan has a total of 28 installments and is secured by 100% ordinary shares of Cambodia Air Traffic Services Company Limited. As of June 30, 2023, the outstanding loans from financial institutions amount to 1,003.44 million baht.

SAV operates its business by holding shares in other companies as a holding company. Currently, the company has only one subsidiary, Cambodia Air Traffic Services Company Limited (CATS). Registered and operating in Cambodia, CATS is responsible for providing air traffic control services solely within Cambodian airspace.

Samart Aviation Solutions Public Company Limited (SAV) has set the price for the initial public offering (IPO) of 166 million ordinary shares at 19.00 baht per share, with a total offering value of 3,154 million baht, divided into shares. 64,000,000 shares, representing 10% of the paid-up registered capital after the IPO and existing ordinary shares and share allocation over 102,000,000 shares, which is 15.94%.

The company will allocate 11,742,548 shares, or 7.07% of the number of ordinary shares to be offered for sale this time to existing shareholders. Samart Corporation Public Company Limited (SAMART) has the right to receive an allocation of shares between 13-15 September, while it will offer ordinary shares of no more than 3,000,000 shares, or the equivalent of 1.81%, to the company’s Credit shareholders and offer 151,257,452 shares, or 91.12%, to individuals at the discretion of underwriters and/or institutional investors. Between 15 and 18-20 September.

Determine the price of ordinary shares that will be offered for sale on this occasion. Considering the survey of the demand for buying securities (Book Building), which is a method of asking about the amount of demand for common shares from institutional investors (Book Building) at each price level. By setting a price range (Price Range) at different levels and then having institutional investors (Book Building) inform the underwriter and underwriter of the price and number of shares they want to subscribe to.

When determining the IPO share price of 19.00 baht per share, if the net profit according to the company’s financial statements for the last 12 months, (from the 3rd quarter of 2022 to the 2nd quarter of 2023), which is equal to 267.46 million baht, has been considered to divide by the total number of ordinary shares of 640,000,000 shares (Fully Diluted), get a net profit per share of 0.42 baht per share and share price back Net earnings per share (Price to Earnings Ratio: P/ E) about 46.66 times.

Mr. Teerachai Phongphanangam, President of SAV, revealed that the company is the only provider of air traffic control services in Cambodia’s airspace. Doing business under a long term concession contract It has a concession period of more than 28 years under clear pricing and revenue sharing costs. SAV has high growth opportunities from being the aviation hub of South East Asia with high growth rates.

The company has signed an agreement to appoint a sales manager. and underwriting sales of the IPO share offering and appointing Asia Plus Securities and Krungsri Securities as joint lead underwriters along with 8 other distributors and joint underwriters, including: AIRA, CGS-C Securities, IMB (Thailand), Dao Securities (Thailand), Kingsford Securities, Krungthai Xspring Securities, Maybank Securities (Thailand) ) Trinity Securities and Finansia Syrus Securities

Mr. Prasert Tantayawit, Managing Director of Asia Plus Advisory Co., Ltd., as SAV’s financial advisor, revealed that SAV is offering IPO shares at a price of 19 baht per share, which is considered an appropriate price level, representing a discount of about 25 -30% of The appropriate average price given by analysts and SAV has a policy of paying dividends up to 50% of net profit And most recently, the company’s board of directors approved an interim payment plan at a rate of 0.75 baht per share after for the shares to be traded on the stock exchange SAV shares have many institutional investors expressing their wish to subscribe. It is expected that approximately 50% of the total number of SAV IPO shares will be allocated to institutional investors.

Purpose of using the money Use it as internal working capital of 376 million baht within 2026 and to repay debts with financial institutions of 840 million baht within the 4th quarter of 2023. The company has a loan contract with a credit limit of USD 66,265,000 for a period of 7 years, with principal and interest paid every 3 months, a total of 28 installments, with collateral, namely 100% ordinary shares of Cambodia Air Traffic Services Company Limited. On June 30, 2023, the company has loans unpaid by financial institutions amounting to 1,003.44 million baht. .

SAV operates its business by holding shares in other companies (Holding Company) with only 1 subsidiary in which the Company is a 100% shareholder, namely Cambodia Air Traffic Services Company Limited (CATS) Registered and to establish in Cambodia To operate the business of providing air traffic control services throughout Cambodian airspace only.

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