CSP Steel Centre plans to float 100 million new shares at three baht each in an initial public offering today and tomorrow. The steel services provider and cold-rolled steel pipe producer will list on the Stock Exchange of Thailand on Dec 22. Seamico Securities is the underwriter.
Post-IPO, the company will list 500 million shares at one baht par value. It is currently 50% held by the Chaisupat family and 43.75% by Chaisupat Co.
Managing director Weerasak Chaisupat said the company would spend 100 million baht raised from the offering on new machinery to boost production capacity.
He said the upgraded facilities would help expand the company's pipe product range. It currently supplies pipes to the auto, furniture and electrical appliance sectors. Production capacity is expected to triple to 30,000 tonnes of cold-rolled steel pipe per year by the end of 2006.
''I'm confident that listing on the SET now is the right timing for the company. We will also benefit from tax incentives as well,'' Mr Weerasak said.
Companies entering the SET by year-end will pay 25% corporate tax instead of the usual 30% for five years.
CSP reported nine-month profits of 67.6 million baht on revenues of 2.14 billion. Mr Weerasak said growth was projected at 15% to 20% in 2006. |
