Market for Alternative Investment (mai) will list Delta Paint pcl, a manufacturer and distributor of decorative paint, on October 28, under the ticker symbol "DPAINT". The company has a market capitalization at its initial public offering (IPO) of THB 1.73 billion (Approx USD 51.83 million).
mai President Prapan Charoenprawatt said that DPAINT would list and start trading on mai in the Property & Construction industry group.
DPAINT and its subsidiaries manufacture and distribute decorative paints under a variety of brands such as Delta, Toptech, National, Seafco, among others. The company's products are categorized into premium quality paint, high-quality paint, and affordable quality paint, with revenue ratio of 35:28:37 respectively in 2020. The firm's clients consist of contractors and paint workers, homeowners, project owners of both public and private sectors. DPAINT's products are sold through modern trade stores, retail outlets, and property projects, generating revenue ratio of 42:52:6 respectively in 2020. In addition, DPAINT also provides auto tinting machine service for hardware store clients.
DPAINT has a registered paid-up capital of THB 230 million, consisting of 176.75 million existing common shares and 53.25 million newly issued shares, with a par value of THB 1.0 each. It offered the newly issued shares of no less than 39.94 million shares to persons at the underwriter's discretion; no more than 7.99 million shares to the company's patrons; and up to 5.32 million shares to the company's directors, executives, and employees during October 19 - 21 at THB 7.50 each, for a total of THB 399.38 million. The IPO price was equivalent to the price-to-earnings (P/E) ratio of 32.80 times. The earnings per share is equal to THB 0.23 each, which was calculated from the company's net profit of THB 52.60 million over the past 12 months (from July 1, 2020 to June 30, 2021), divided by fully diluted shares. Pioneer Advisory Co., Ltd. is the financial advisor, while Finansa Securities Limited. is the underwriter.
DPAINT Chief Executive Officer Ronnarit Tangkaravakoon said that the company has capable and experienced management team and skilled personnel in decorative paint industry and has also established strong relationship with customers and suppliers. The fundraising will be used to enhance the factory, machinery and production system of the plant in Suwinthawong area (east of Bangkok); purchase 440 auto tinting machines; improve ERP and a laboratory; and as working capital.
DPAINT's major shareholder after the IPO is the Atnarong Tangkaravakoon group (73.91 percent). The company's dividend policy is to pay no less than 40 percent of net profit from the company's separate financial statement after corporate income tax and all other legal reserves.
For more information on DPAINT, please see the company's prospectus at the Securities and Exchange Commission (SEC)'s website at www.sec.or.th; and for general information, please visit www.deltapaint.co.th as well as www.set.or.th.