ASEAN KEY DESTINATIONS
Thai bourse welcomes beverage producer Ichitan Group
BANGKOK, April 18, 2014 – The Stock Exchange of Thailand (SET) welcomes Ichitan Group pcl, Thailand’s leading ready-made beverage manufacturer and distributor, on its main board on April 21, under the ticker symbol “ICHI,” after raising fund worth of THB 3.9 billion (approx. USDxx million) via initial public offering (IPO).
SET Executive Vice President Chanitr Charnchainarong said that ICHI would be listed in SET's Food and Beverage sector, the fourth new listing on SET this year. The company produced and distributed ready-made beverages under the brand of ICHITAN, such as ready-to-drink green tea, black tea, health-conscious drinks, green tea mixed with herbs and low-sugar beverages. ICHI is a market leader of ready-to-drink green tea, gaining 42 percent of the total. Its annual capacity was at 600 million bottles and 200 million cartons.
ICHI has a paid-up registered capital of THB 1.3 billion, consisting of 1 billion existing shares and 300 million newly-issued shares, with a par value of THB 1.00 each. The company offered the newly-issued shares through an IPO at THB 13 per share during April 8-11, for the total of THB 3.9 billion with market capitalization at the IPO price of THB 16.90 billion. Asia Plus Advisory Company Limited is the company's financial advisor and Asia Plus Securities pcl is its lead underwriter.
Tan Passakornnatee, Chairman and CEO of Ichitan Group pcl, said “The fund raised will be used for repayment of loans from financial institutions and the company’s directors, working capital as well as capacity expansion of its second phase factory. Its construction has begun since the second quarter of 2013 and is expected to be completed by this year. The new factory will boost the company’s annual capacity to 1,000 million bottles, up from the current 600 million, enabling it to expand into both domestic and overseas markets, ready for the advent of the ASEAN Economic Community.”
ICHI's three major shareholders after the IPO are Mr.Tan and Mrs.Eng Passakornnatee Group (40.05%), The Representatives of Mr.Tan Passakornnatee Group (20.97%), and Mr. Yueh-Chin Chiu (4.99 percent). The IPO price had a price-to-earnings ratio (P/E) of 19.2 times, calculated by using its 2013 net profits of THB 881.70 million, divided by the number of fully-diluted shares, representing earnings per share of THB 0.70. The P/E ratio was lower than 30 times, an average P/E ratio of peers operating the similar business (during October 2, 2013 - April 1, 2014). ICHI's dividend policy is to pay no less than 40 percent of net profits after taxes and reserves.
For more information on ICHI, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th and general information at the company's website at www.ichitangroup.com and www.set.or.th .
As of 18 April 2014 Unit: M.Baht
Type Buy Sell Net
Institution 3,033.46 2,842.74 190.71
Proprietary 2,901.28 3,164.34 -263.05
Foreign 4,212.04 2,941.42 1,270.62
Individual 14,990.27 16,188.56 -1,198.28
Total Trading Value 25,137.06 M.Baht
Vietnam index ends at 9-wk low, more falls expected
Vietnam's benchmark VN Index closed 2.58 percent down on Friday at 565.33 points, its lowest level since Feb. 12, boosted by strong selling from major investors and more falls were expected next week as the market lacked supportive news, analysts said.
Most blue chips in Ho Chi Minh City Stock Exchange's VN30 Index -- which features on the top 30 best performing companies -- lost ground, led by real estate firms and banks.
HAGL Co lost 2.23 percent, and Vingroup tumbled 2.26 percent to 65,000 dong ($3.08) per share, its lowest price in six months.
Hanoi-based lender Vietcombank fell 1.7 percent and Vietinbank dropped 1.86 percent.
The trading volume staying low in the past two weeks showed that the market have been on its downtrend in the medium term, said Nguyen Tuan, Deputy Manager at An Binh Securities.
About 117 million shares were traded on Friday, below the five-day average of 129 million.
"Big investors are selling after some blue chips reached their top prices," Tuan added. "The market is expected to dip further in the next several weeks."
The index has lost nearly 5.2 percent this week.
Here is a snapshot of the VN Index
VN Index 565.33
PREV. CLOSE 580.31
% CHANGE -2.58%
SE Asia Stocks-Thai shares close at 5-mth high; Vietnam falls to 9-wk low
Thai shares on Friday closed at their highest since late November on solid buying while Vietnam's benchmark tumbled to a nine-week low amid widespread selling.
Bangkok's SET Index edged up 0.03 percent to mark a third straight day of gains, led by telecom firm Advanced Info Service Pcl <ADVANC.BK> which rose 1.27 percent.
"Decent foreign equity inflows may continue to support SET in the near term," KGI Securities said in a note to clients.
Foreign investors were net buyers of shares worth 7.5 billion baht ($233.1 million) in the $386-billion market in seven consecutive trading sessions as of Friday , But analysts expect the index to face some selling off around a resistance level of 1420.
"Catalysts for possible near-term correction remain local institutional selling and the longer than expected drag from politics," KGI said.
Malaysia's Kuala Lumpur Composite Index witnessed a second day of gains after hitting a three-week low on Wednesday. It edged up 0.12 percent to end at 1852.69.
The Vietnamese index, however, plummeted 2.58 percent to its lowest level since Feb. 2 on widespread offloading of stocks amid strong selling on expectations of further losses.
VN Index has dropped 5.16 percent this week, losing its title as Southeast Asia's best performer so far this year.
Stock markets in Singapore, Indonesia and the Philippines were closed for a holiday and will resume trading on Monday.
SOUTHEAST ASIAN STOCK MARKETS
Market Current Prev Close Pct Move
TR SE Asia Index* 421.09 421.55 -0.11
Kuala Lumpur 1852.69 1850.54 +0.12
Bangkok 1409.18 1408.78 +0.03
Ho Chi Minh 565.33 580.31 -2.58