Market for Alternative Investment (mai) will list Kijcharoen Engineering Electric pcl, a manufacturer and distributor of switchboards, electrical cable tray, electrical wiring, and customized sheet metal works on November 22 under the ticker symbol "KJL." The company has a market capitalization at its initial public offering (IPO) of THB 1.57 billion (approx. USD 43.61 million).
mai President Prapan Charoenprawatt said that KJL will be listed and start trading on mai in the Industrials industry group.
KJL manufactures and distributes switchboards, electrical cable tray, electrical wiring equipment, and tailor-made sheet metal parts produced by modern machinery and production technology under KJL trademark. The company sells both KJL standard and made-to-order products certified with international quality standards. In addition, the company has been authorized by French-based Schneider Electric to produce and sell Prisma iPM electrical switchboard of which the factory located in Krathum Baen district, Samut Sakhon province, south of Bangkok. KJL's target customers are dealers, electrical contractors, general electrical equipment stores, and various organizations. During the first six months of 2022, KJL standard products contributed 69 percent of the company's total revenue, 22 percent from made-to-order products, and the remaining 9 percent from scrap metal and metal sheets.
KJL has a paid-up capital of THB 58 million, consisting of 86 million existing ordinary shares and 30 million newly issued shares, with a par value of THB 0.50 each. It offered the newly issued shares of 22.5 million shares to the persons at the underwriters' discretion, 4.5 million shares to the company's patrons, and 3 million shares to the company's directors, executives and employees, during November 9 - 11, at THB 13.50 each, for a total of THB 405 million. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 13.99 times. The earnings per share is equal to THB 0.97, which was calculated from the company's net profit of THB 111.96 million in the past four quarters (from June 30, 2021 to June 30, 2022) and divided by fully diluted shares. Yuanta Securities (Thailand) Co., Ltd. is the financial advisor and lead underwriter.
KJL Chief Executive Officer Kasemsan Sujiwarodom said that the listing on mai is another step forward to enhance competitive edge towards industry excellence. The company aims to meet the needs of diverse customers in each industry inclusively via innovation and advanced technology, achieving high standards and quality, with fast and prompt services. The fund raised will be used to invest in KJL Innovation Campus, the factory construction and machinery, repay short-term loans, acquire Solar Rooftop power generation system, and as working capital.
KJL's major shareholders after the IPO is the Sujiwarodom family group (74.14 percent). The company's dividend policy is to pay no less than 40 percent of net profit from the company's separate financial statements after corporate income tax and all types of legal reserves.
For more information on KJL, 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.kjl.co.th as well as www.set.or.th.