||Asean Affairs 19 June 2013
Thai bourse welcomes low-cost airline Nok Air on June 20
BANGKOK, June 18, 2013 - The Stock Exchange of Thailand (SET) welcomes Nok Airlines pcl, a leader in Thailand’s low-cost airline business with the most domestic destination coverage, to its main board, which will start trading on June 20 under the ticker symbol "NOK", after it raised THB 3.25 billion (approx. USD 108.33 million) via an initial public offering.
SET Executive Vice President Chanitr Charnchainarong said: "NOK will list and trade in the service industry, under the Transportation & Logistics sector on June 20. NOK is a budget airline providing travelers with point-to-point regional air service under brand of ‘NOK Air’. It covers markets in Southeast Asia and some parts of China.”
NOK has a paid-up registered capital of THB 625 million (approx. USD 20.83 million), consisting of 500 million existing common shares and 125 million newly-issued shares, with a par value of THB 1.00 each. The company offered 187.50 million shares to the general public via IPO at THB 26.00 per share, for a total of THB 4.875 billion (approx. USD 162.50 million), on June 12 – 14. The offering includes 125 million newly-issued ordinary shares, worth THB 3.25 billion, and 62.5 million existing shares, worth THB 1.625 billion, offered by Aviation Investment International Limited, one of the current owners. The Siam Commercial Bank pcl is its financial advisor. SCB Securities Co., Ltd. is its lead underwriter.
Patee Sarasin, Chief Executive Officer of Nok Air, said: “Fundraising proceeds will be used for working capital to support business expansion and aircraft procurement. NOK ensures quality services that best address the needs of passengers who are mostly Thais. NOK’s routes cover the most destinations in Thailand with the highest flight frequency. With safety as our priority, NOK has partnered with Lufthansa Technik for aircraft maintenance. We plan to add flights to neighboring countries, including Myanmar, and will explore opportunities in China.”
NOK's top three shareholders after the IPO are Thai Airways International pcl, with 39.2%; Aviation Investment International Limited, with 10%, and Laddawan Fund Co., Ltd., with 4.8%. NOK IPO price was derived using book-building and has a price-earnings (P/E) ratio of 14 times, calculated using earnings per share over the last four quarters (from the second quarter of 2012 to the first quarter of 2013), excluding maintenance cost for leased aircraft return coming to THB 247.4 million, and the 625 million fully-diluted shares after its IPO. The company's dividend policy is to pay no less than 25 percent of net profit after corporate taxes and reserves.