B.Grimm offers SET IPO in Q2
Firm aims for 36% annual gains to 2021
B.Grimm Power Co, a unit of B.Grimm Group, has unveiled its plan for an initial public offering scheduled for the second quarter to raise capital expenditures via the Stock Exchange of Thailand (SET).
Group chairman Harald Link said the amount of funding from the IPO has not been decided by its financial advisers Phatra Securities, Kasikorn Securities and Bualuang Securities.
The group aims for its power business to grow at an average of 36% a year from this year to 2021. The company seeks to list on the SET to raise funds for expansion, said Mr Link.
It will allocate cash from the IPO to four activities: ongoing development projects, preparation for new development projects, refinancing its power plant projects, and working capital.
B.Grimm Power, which is Thailand’s biggest small power producer, has submitted its listing plan. It tentatively expects to float 775.5 million shares. Its IPO road show has been scheduled for early April, with share subscriptions expected from mid-April until trading starts in May.
Mr Link said the company has 12 ongoing, committed projects over the next five years in Thailand and Laos, which would require capital expenditure of almost 55 billion baht.
He said Thailand is transforming itself into an innovation-based economy and the basic need has shifted from cheap labour to sufficient and stable electricity.
The capex will be spent on committed projects that account for 2,383 megawatts of combined power-generating capacity to be developed between this year and 2021, ranging from fossil fuel to renewable energy.
Projects scheduled to start commercial operations either last year or this year include SPP-ABPR units 3-5, SPP-Bowin and two hydropower plants, Xenamnoy (phase 2) and Xekatam (phase 1), in Laos.
B.Grimm’s total power-generating capacity from all power plants this year is projected to be 2,060MW, up from 1,626MW last year. The capacity is expected to rise to 2,100MW next year.
The proportion of power generated from renewable sources should rise to 30% next year, up from 10%, said Mr Link.
For the projects in Laos, he said hydropower plants have high potential as the company has committed to develop eight such plants with a combined power-generating capacity of 12.6MW. Two of those are the Xenamnoy (phase 2) and Xekatam (phase 1) projects, both located in Champasak province and still under construction.
The other six hydropower plants are also under construction, including Nam Che 1 with a capacity of 15MW, Nam Khao 1 with 15MW, Nam Khao 2 with 15MW.