ASEAN KEY DESTINATIONS
September 26, 2017
mai welcomes “Sermsang Power Corporation” on September 27
BANGKOK, September 26, 2017– Market for Alternative Investment (mai) will list Sermsang Power Corporation pcl, a holding company investing in solar power production and distribution, on September 27, under the ticker symbol "SSP". The company has a market capitalization at its initial public offering (IPO) of THB 7.1 billion (approx. USD 208.8 million).
mai President Prapan Charoenprawatt said that SSP would list and start trading on mai in the Resources industry group. SSP is a holding company that invests in companies that generate and sell electricity from renewable energy and other related businesses in Thailand and overseas.
SSP has invested in 100 percent stake in two solar plant projects in Thailand: 1) Sermsang Solar in Lopburi province, a commercially operated project that started the operation since February 2015 with contracted capacity of 40 megawatts; 2) Solar WVO Project in Ratchaburi province which is being developed, to be constructed, with contracted capacity of 5 megawatts, and expected to start commercial operation by Q4/2018. Moreover, The company has 86.9–100 percent investment in five solar plant projects in Japan with a total contracted capacity of 93 megawatts, expected to launch commercial operation of 23 megawatts in 2018 and 70 megawatts in 2020. In addition, SSP also invests in two solar rooftop plants in Thailand with total installed capacity of 1.4 megawatts, expecting to start commercial operation by this coming Q4/2017.
SSP has a paid-up capital of THB 922 million, consisting of 691.63 million existing common shares and 230.38 million newly issued shares with a par value of THB 1.00 each. The company offered the newly issued shares to general public via IPO during September 18-20, 2017, at THB 7.70 each for a total of THB 1.77 billion. In addition, Unity I. Capital Limited, its major shareholders also offered 46 million existing common shares at the same price. Kasikorn Securities pcl is the financial advisor and lead underwriter.
SSP Chief Executive Officer Varut Tummavaranukub said SSP has been constantly developing various projects, employing advanced technology and quality equipment, while focusing on the most suitable plant locations. In addition, SSP also has the policy to invest in power plants using other renewable energy resources such as wind, biofuel, biomass and wastes in Thailand and other countries especially in Asia. The fund raised would be used for debt repayment and as working capital, and investing in renewable energy projects under the operation or other future projects of the company and/or the subsidiaries.
SSP's three major shareholders after the IPO are Kraipisitkul Family (70.02 percent), Bank of Singapore Limited (1.03 percent), and TISCO Master Pooled Fund (0.44 percent). The IPO price was set by a book building process, equivalent to price-to-earnings (P/E) ratio of 18.3 times calculated by using the company's net profit in the past four quarters (July 1, 2016-June 30, 2017), divided by fully diluted shares, representing earnings per share of THB 0.4210. SSP's dividend policy is to pay no less than 40 percent of net profit, after corporate income tax and reserves.
For more information, 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.sermsang.com and www.set.or.th
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