||Asean Affairs 17 July 2013
Thai bourse lists CK Power on July 18
The Stock Exchange of Thailand (SET) welcomes CK Power pcl, the first Thai holding company that has its core subsidiary company abroad to list on the Thai bourse, which will start trading on July 18 under the ticker symbol "CKP", after it raised THB 2.34 billion (approx. USD 78 million) via an initial public offering. CKP has Nam Ngum 2 hydro power plant in Lao PDR as its foreign-based core firm.
SET Executive Vice President Chanitr Charnchainarong said: "CKP will list and trade in the Resources industry, under the Energy & Utilities sector. CKP invests in the production and sale of electricity from various types of energy. The Lao government has authorized CKP’s core investment, Nam Ngum 2 hydro power plant, to produce and sell hydro energy with an installed capacity of 615 megawatts (MW). It also has a power purchase agreement with the Electricity Generating Authority of Thailand and has invested in solar power and thermal power plants in Thailand.”
CKP has a paid-up registered capital of THB 5.5 billion (approx. USD 183.33 million), consisting of 920 million existing common shares and 180 million newly-issued shares, with a par value of THB 5.00 each. The company offered 220 million shares to the general public via IPO at THB 13.00 per share, for a total of THB 2.86 billion (approx. USD 95.33 million), on July 10 - 12. The offering includes 180 million newly-issued ordinary shares, worth THB 2.34 billion, and 40 million existing shares, worth THB 520 million. The Siam Commercial Bank pcl, KTB Advisory pcl, and Advisory Plus Co., Ltd. are its financial advisors. Asia Plus Securities pcl, SCB Securities Co., Ltd., Bualuang Securities pcl, and KT ZMICO Securities Co., Ltd. are its underwriters.
Plew Trivisvavet, Chairman of the Executive Board of CK Power, said: "Fundraising proceeds will be used for electricity business expansion and paying back loans. CKP has growth potential and stable income from long-term power purchase agreements, and is determined to expand its investments in alternative and clean energy, aligning with the company’s commitment to save the environment and be responsible to society."
CKP's top three shareholders after the IPO are CH. Karnchang plc (31.78%), Bangkok Expressway plc (23.22%) and Thai Tap Water plc (25%). The IPO price was set at THB 13.00 per share, calculated using a price - earnings (P/E) ratio of 124.37 times, a price-book value (P/BV) ratio of 1.28 times and Enterprise value - Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 15.42 times. The company's dividend policy is to pay no less than 40 percent of net profit after corporate taxes and reserves.