A 50-basis-point reduction in the Bank of Thailand's one-day repurchase rate, which is a favourable factor for the property market, will also give it a boost, he said.

The company last month floated 20 million shares through the IPO at a price of Bt6.50 apiece.

The lead underwriter is Trinity Advisory, with Seamico Securities, Thanachart Securities, Bualuang Securities and Ayudhya Securities as co-underwriters.

Lertmongkol said the selling price was set when the Stock Exchange of Thailand Index was at 660 points.

The company's net profit dropped to Bt40.64 million last year, from Bt74.24 million in 2005, due mainly to Bt49 million in taxes on high-rise building-rights transfers.

Rasa will be liable for only Bt1 million in taxes for high-rise building-rights transfers this year, he said.

"In 2006, the company's before-tax profit amounted to Bt80 million. This indicates that the company's profitability has not deteriorated. The tax will not cause a fluctuation in the company's profit in the future like was incurred in 2005," he added.

Lertmongkol said two brokers holding the company's shares would help reassure investors about its business fundamentals.

Trinity Securities deputy managing director Sathapana Leoprapai said the company and Seamico Securities, on behalf of underwriters for Rasa's IPO shares, bought 3.97 million and 1.11 million shares, respectively, after they failed to sell out the property developer's stock. The failure in the share allocation could be ascribed to the unfavourable stock-market conditions and lack of investor confidence, he said.

Meanwhile, an analyst who declined to be named said Rasa's debut was likely to perform poorly, because some investors had already left the market for the long Songkran holiday.

Siriporn Chanjindamanee

The Nation