Market for Alternative Investment (mai) will list Yong Concrete pcl, a manufacturer and distributor of precast and ready-mixed concrete products with prefabricated structure installation services, on August 2, under the ticker symbol "YONG". The company has a market capitalization at its initial public offering (IPO) of THB 1.70 billion (approx. USD 46.31 million).
mai President Prapan Charoenprawatt said that YONG would list and start trading on mai in the Property & Construction industry group.
YONG and subsidiaries manufacture and distribute precast and ready-mix concrete products, as well as providing prefabricated structure installation services, under the trademark "YONG". The group of companies' products and services can be categorized into three types as follows: 1. One-stop precast concrete product manufacturing and distribution business, including beam structures, poles, precast walls, piles and precast concrete fences, 2. Ready-mixed concrete product manufacturing and distribution business; and 3. Transport service business, operated by its 100 percent-owned subsidiary, Prom Transport Co., Ltd., with seven factories for precast concrete products and/or ready-mixed concrete in Kanchanaburi, Nakhon Pathom and Chonburi provinces. For the first three months of 2022, the group's revenue ratio of precast concrete products : ready-mixed concrete products : transport business and other businesses is approximately 83 : 13 : 4, completely equipped with all distribution channels for customers' projects from both private and government sectors.
YONG has a registered paid-up capital of THB 340 million, consisting of 500 million existing ordinary shares and 180 million newly issued shares, with a par value of THB 0.50 each. Of the total newly issued shares, it offered not less than 165 million shares to persons at the underwriter's discretion and institutional investors, up to 5 million shares to the company's benefactors, and up to 10 million shares to the company's directors, executives and employees, during July 21-22 and 25 at THB 2.50 each, for a total of THB 450 million. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 26.10 times. The earnings per share is equal to THB 0.10, which was calculated from the company's net profit of THB 65.14 million in the past 12 months (April 1, 2021 - March 31, 2022), divided by fully diluted shares. Finnex Advisory Co., Ltd. is its financial advisor and Asia Wealth Securities Co., Ltd. is the lead underwriter.
YONG Managing Director Sunpetch Slisatakorn said that the company has over 30 years of experience in manufacturing concrete products, equipped with teams of engineers who are knowledgeable and capable in production and quality control, ready to keep the customers well-informed and provide advice from end-to-end, starting from design, production, to installation. In addition, the company can produce a wide range of precast concrete products, enabling the order of large quantities of raw materials and effective negotiation with raw material suppliers, resulting in the benefits from economies of scale. The fund raised will be used to invest in the construction of a factory at Bang Len district, Nakhon Pathom province (west of Bangkok) to expand production capacity and develop related systems; to invest in the construction of a ready-mixed concrete plant at Bang Yai district, Nonthaburi province; to repay loans to financial institutions, and as working capital for business operations.
YONG's largest shareholder after the IPO is Slisatakorn family (72.76 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 types of reserves as specified by law and the company's regulations.
For more information on YONG, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit www.yongconcrete.co.th as well as www.set.or.th.