Market for Alternative Investment (mai) will list Premier Tank Corporation pcl, the oil terminal provider in the northeastern region of Thailand, on February 15, under the ticker symbol "PTC". The company has a market capitalization at tis initial public offering (IPO) of THB 1.44 billion (approx. 43.6 USD million).
mai President Prapan Charoenprawatt said that PTC will list and start trading on mai in the Resources industry group.
PTC operates the oil terminal of petroleum business in compliance with Section 17 of the Fuels Oil Control Act, B.E. 2542 (1999), with main services consisting of loading, storing and unloading fuels. The company has two oil terminals : 1) a depot in Khon Kaen province containing 10 oil storage tanks with a total volume of 9.0 million litres, accommodating 1.4 billion litres per year of each loading and unloading capacity; and 2) a depot in Sisaket province having 10 oil storage tanks with a total volume of 9.7 million litres, accommodating the annual loading and unloading capacity of 830 million litres and 770 million litres , respectively.
PTC has two groups of customers: the first group is oil traders categorized according to Section 7 of the Fuels Oil Control Act (direct customers), currently having PTT Oil and Retail Business pcl (OR) as the sole customer; and the second one consists of gas stations (indirect customers), mainly located in the upper and lower part of the country's northeastern region. Moreover, PTC provides blending services of basic formula according to customer needs at the Sisaket oil depot, enabling services specifically to gas stations under various brands.
The company has a registered paid-up capital of THB 205 million, consisting of 300 million existing common shares and 110 million newly issued shares, with a par value of THB 0.50 each. It offered 105.61 million newly issued shares to persons at the underwriters' discretion, and 4.39 million shares to the company's directors, executives and/or staff during February 4 - 8 at THB 3.50 each, for a total of THB 385 million. The IPO price was equivalent to the price-to-earnings ratio (P/E ratio) of 13.81 times. The earnings per share is equal to THB 0.25, which was calculated from the company's net profit of THB 103.93 million in the past four quarters (from Oct 1, 2020 - Sept 30, 2021) divided by fully diluted shares. Finnex Advisory Co., Ltd. is its financial advisor and Finansa Securities Co., Ltd. is the lead underwriter.
PTC Chief Executive Officer Weerawat Burapapattanapong stated that PTC is one of the oil terminal operators that play major roles in the distribution of fuel to the gas stations in the northeastern region with safety and efficiency, and at a reasonable cost. Moreover, PTC aims to boost the logistics efficiency of loading and unloading oil via a variety of storage transfer methods, and increase the number of gas station customers. The proceeds arising from the fundraising will be used for debt repayment to financial institutions and as working capital. Furthermore, the company plans to build an oil pickup railway station at Sisaket fuel depot in order to enhance the potential in servicing customers and cut down their transportation cost.
PTC's two major shareholders after the IPO are 1) Burapapattanapong family group (51.16 percent), 2) C4 Corporation Co., Ltd. - a wholly-owned subsidiary of TAPAC - (16.83 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 all legal reserves.
For more information, 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.premiertankcorp.com, or www.set.or.th.