Home Business STECH to close the worker’s camp without impact To sell ‘IPO’ 203.5 million shares, trading this July.

STECH to close the worker’s camp without impact To sell ‘IPO’ 203.5 million shares, trading this July.

by news dir

29 June 2021


37

“Siam Technic Concrete” prepares to sell IPO 203.5 million shares. Trade this July to raise funds for the expansion of the prestressed concrete column factory – working capital. Shouting to close the camp, the workers have a slight impact Even though the income recognition is slow, but I am confident that I will still be able to catch up this year. Yearly income assured 64 grow not less than 20-25%

Mr. Watchai Mongkolsrisawasdi Chief Executive Officer Siam Technic Concrete Public Company Limited or STECHRevealed that for the case that the government has ordered to close the camp for 30 days, it is seen that there is little impact. For construction sites in Bangkok and the provinces This may cause the company to recognize revenue late. But I see that it can still be realized in 2021. In addition, the company has factories spread all over the region (except the southern region) which can still operate normally.

The company is confident that this year will grow as the target. has revenue growth of at least 20-25% from 2020 with revenues of approximately 1,500 million baht, which currently has a large number of backlog products, with a total production capacity of 3.18 hundred thousand cubic meters / year from 9 factories

It is expected that after the construction of the Chonburi plant, Branch 2, completed in the fourth quarter of this year2, the start of production will result in 2022 the total production capacity will increase by approximately 30% to 4.2 hundred thousand queue per year and have a total of 10 factories.

In addition, there is also an additional capacity from the Mukdahan plant, which is expected to be completed in 2024, supporting a total of 11 production plants, with the current capacity utilization rate of 70%.

At the same time, the company expects to be able to offer the initial public offering (IPO) and to be listed on the Stock Exchange of Thailand (SET), expected to enter the real estate and construction industry. Construction Materials Business Available within the month of July.

Mr. Rattachai Thirathanawat, Co-Chief Executive Officer of Investment Banking – Capital Market, KTBST Securities Public Company Limited, as underwriter and underwriter revealed that STECH will offer IPO of 203,500,000 shares with a par value (par) of 1.00 baht, representing 28.07% of the total number of issued and paid-up ordinary shares after this IPO.

which such fundraising will be used 1. Expansion of prestressed concrete column business approximately 298 million baht, divided into a new factory construction project in Chonburi Province, Branch 2 amounting to 58 million baht in 2021, a project to expand the production capacity of the Don Phut factory 45 million baht in 2022, a new factory construction project in Mukdahan province. 80 million baht in 2023 , 50 million baht concrete transportation truck project in 2021 , 65 million baht anti-vibration press project in 2021

2. Develop raw materials used in the production of 10 million baht in 2021 , 3. Repay short-term loans in the form of promissory notes from the institution of 250-300 million baht in 2021 , and 4. Use as working capital for the operations of Company in the rest

Mr. Komkrit Meekhamsat, Managing Director of Capital Market Division RHB Securities (Thailand) Public Company Limited, as an underwriter and underwriter, revealed that STECH was efficient in accepting work. With the strengths of factories that are distributed in the central, northern, eastern and northeastern regions, they are not concentrated, which is a good result in meeting the needs of customers efficiently. low shipping costs Reflecting on strong profitability growth, STECH is viewed as a quality stock that grows with the country’s infrastructure work.

Ms. Jirayong Anumanratchathon, Managing Director of Jay Capital Advisory Company Limited, as a financial advisor of STECH, revealed that STECH has the opportunity to grow its business continuously. which is confident that it will be a growth stock (Growth Stock) after being traded in the Stock Exchange And it will be a stock that gives good dividends. because the demand for the product is still high According to Thailand’s approach to infrastructure in various sectors

which STECH has partners who are major contractors. There is a chance to get a lot of work from the government sector. In addition, the company There are factory branches distributed in different regions. which will have the infrastructure to occur From this point, the factory near the construction site helps the company to save transportation costs. fast operation high profit potential I believe it will be a good stock. However, the company’s dividend payment policy is not less than 40% of the net profit.

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