Rich Asia Steel sets IPO share price at Bt2.25
Rich Asia Steel Plc has priced its 100 million initial public offering (IPO) shares at Bt2.25 each. The subscription period is to run from Monday through Wednesday.
Managing director Somkiat Vongsarojana said Seamico Securities Plc will serve as the financial adviser and lead underwriter for the steelmaker's IPO. Syrus Securities, BT Securities, Far East Securities, Phillip Securities (Thailand), Merchant Partners Securities and United Securities are underwriters. Proceeds from the share allocation will be used to buy machinery and equipment and to repay short-term debt. The company's paid-up capital will be raised from Bt400 million to Bt500 million following the share allotment. Rich Asia Steel is Thailand's leading steel-pipe manufacturer and distributor, with output of 125,000 tonnes a year. The company reported a net profit of Bt15.87 million last year. "We expect the stock will receive a warm welcome from investors because of the upward trend of steel prices. Many of the company's trade partners and allies have expressed interest in investing in the company because they are confident of our business potential," Somkiat said. He said the company was "undaunted by the economic and political situations because the environment is improving and steel prices have continued to increase".
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