INITIAL PUBLIC OFFERING
Rasa reviewing its listing allocation
From left, Trinity Advisory 2001 managing director Pises Sethasathira takes part in a toast with Rasa Property Development managing director Acharaporn Siriphaivansa, chairman Manop Bongsadadt and deputy managing director Rapi Pinijchob during yesterday’s
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Property developer may restructure its allotment plan and offer all 20 million shares only to retail investors
Rasa Property Development is proposing to allot its entire initial public offering of 20 million shares to retail investors. The firm earlier planned to allocate 18 million shares to retail and institutional investors and offer the remaining 2 million to close associates of the company. Sathapana Leoprapi, deputy managing director of Trinity Advisory 2001, Rasa's financial adviser, yesterday said the share allotment could be restructured as the number of shares in the IPO is not more than 20 million. "We will finalise the decision on the issue within a day or two. In our survey of Trinity's customers, the majority expressed interest in investing in Rasa's IPO. Also, a couple of institutional investors have enquired about the offering," Sathapana said. He accepted that the limited number of shares in the IPO might cause a liquidity problem later on, so it is possible that the current par value of Bt5 per share will be split. However, this will be discussed later after considering the share price and liquidity when the firm begins trading on the Stock Exchange of Thailand. The IPO price is set at Bt6.50 per share, and the subscription period is Thursday and Friday. The property developer plans to list on the SET on March 12. The company has projected a rise of 10-15 per cent in sales this year. It has a property backlog of around Bt300 million. Lertmongkol Waravenuch, assistant managing director of Rasa's financial and business development division, is optimistic on sales growth as consumer confidence is expected to pick up due to declining interest rates and oil prices. Last year, the company reported revenues of Bt668 million. It has five projects ready to launch. They comprise two condominium projects worth Bt200 million apiece, and three detached-housing developments worth about Bt613 million each. In addition, the company has construction contracts valued at around Bt400 million-Bt500 million in the pipeline for this year. Lertmongkol said the company expected profits to grow by about 28 per cent this year.
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