ASW Sets IPO Price at 9.82 Baht, Subscription Open from April 19 to 21, Trading on SET from April 28.

Highlighting Comprehensive Real Estate Development with a Backlog of Over 7.8 Billion Baht.

 

Asset Wise Public Company Limited (ASW) has set the IPO price at 9.82 Baht, with subscriptions open from April 19 to 21. The company is set to trade on the SET on April 28. Financial advisors and lead underwriters are confident of strong investor interest, emphasizing the company's comprehensive real estate development capabilities and a backlog awaiting transfer of over 7.8 billion Baht, with a high profitability potential and a Gross Profit Margin exceeding 40%. CEO “Kromchet Wiphanpong” has earmarked 2021 for the launch of 6 new projects valued at over 10,000 million Baht to support outstanding growth.

 

Ms. Yodruedi Santatikul, Deputy Managing Director and Head of Capital Markets at Asia Plus Securities, as the distributor and underwriter for ASW's common shares, revealed that the IPO price for the public offering is set at 206 million shares with a par value of 1.00 Baht per share at a price of 9.82 Baht, resulting in a price-to-earnings (P/E) ratio of 8.54 times (Post-IPO Dilution), which is considered a fair price based on the company's fundamentals. Subscriptions will be open from April 19 to 21, and it is expected to be listed on the Stock Exchange of Thailand (SET) on April 28, 2021, trading under the symbol "ASW" in the real estate development sector.

 

The offering will also involve 4 other distributors and underwriters, including Krungsri Securities Public Company Limited, KGI Securities (Thailand) Public Company Limited, Maybank Kim Eng Securities (Thailand) Public Company Limited, and UOB Kay Hian Securities (Thailand) Public Company Limited.

 

"The IPO price of 9.82 Baht/share corresponds to a P/E of 8.5 times, calculated from the 2020 earnings compared to the industry P/E of 11 times, providing investors with a discount of approximately 23% which is considered a reasonable price aligned with the fundamentals. ASW is a highly investable stock, especially after the roadshow, where investors gained a better understanding of the business and its future operational trends, indicating significant growth potential, leading to strong interest, particularly from institutional investors who have booked over 6 times the allocated amount," Ms. Yodruedi stated.

Ms. Siriporn Laeratanakul, Assistant Managing Director at Asia Plus Advisory Company Limited, as the financial advisor, stated that ASW is a company capable of developing projects that meet customer needs, with a strong emphasis on location and a distinctive brand to reach target customers. The company has a high profitability rate compared to the same industry, with a Gross Profit Margin last year exceeding 40% due to effective cost management backed by extensive business experience.

 

"We believe that ASW will impress investors due to its continuous growth, with a backlog awaiting transfer of over 7,800 million Baht, which will gradually recognize revenue this year through to 2023," she added.

 

Mr. Kromchet Wiphanpong, CEO of ASW, stated that the funds raised from this offering will be used for project development, repayment of financial institution loans, and working capital, which will include launching new projects and purchasing land to support future project launches. This year, the company plans to launch 6 new projects valued at 10,850 million Baht.

 

"After entering the capital market, the company's financial position will strengthen, financial costs will decrease, and its reputation will be recognized and accepted at a national level, increasing future growth opportunities. We are confident that we will be able to deliver good returns to investors in the long term," Mr. Kromchet concluded.

 

Notably, ASW currently has a total of 33 projects valued at 30,420 million Baht, comprising 25 completed projects worth 19,043 million Baht, 8 projects under construction and for sale worth 11,377 million Baht, and 11 future projects valued at a total of 21,202 million Baht, which will be launched and developed over the next 4-5 years.