Firetrade Engineering tabs IPO to heat up expansion

Firetrade Engineering Plc (FTE) is set to launch an initial public offering (IPO) later this month as it aims to lock in its position as a market leader and raise funds for domestic branch expansion.

The company plans to offer 150 million shares for its IPO at 2.95 baht each, with par value of 50 satang each.

The IPO is slated for subscription on July 20, 21 and 24, with actual trading on the Stock Exchange of Thailand scheduled for July 27.

FTE managing director Taksin Tantipijit said the raised funds will be used to build a new warehouse and open new sales and service branches in Rayong, Chiang Mai and Phuket.

The funds will also be allocated as working capital to improve efficiency in its business operations, he said. FTE aims to maintain its leading market position as a provider of fire prevention devices, while also enhancing profits and providing a decent returns to shareholders.

FTE is a leading importer and distributor of fire prevention devices and alarm systems. The company also provides services including design, installation, preventative maintenance and operations for fire suppression systems.

Asset Pro Management Company Limited (APM) has been appointed as a financial adviser for FTE, while Finansia Syrus Securities is the lead underwriter. The five co-underwriters are: Phillip Securities, Globlex Securities, Asia Plus Securities, Trinity Security and Capital Nomura Securities.

APM chairman Somphop Sakpunpanom said it is a good time for FTE to receive IPO approval from the Securities Exchange Commission Office, as it will aid the firm’s expansion plans in Thailand and neighbouring countries, namely Cambodia, Laos, Myanmar, and Vietnam.

FTE’s business is exceptional as reflected through its distribution, design and complete installation of fire extinguisher equipment and systems, said APM chief executive Somsak Sirichainarumitr.

“The company’s business has strong potential for growth due to public and private sector projects, which require the installation of fire alarm equipment and systems in order to follow building control regulations,” he said.

“This also includes installation of high voltage electrical substations, which are expanding increasingly in line with domestic electricity consumption. It’s a good opportunity for FTE’s future growth, offering stocks with outstanding returns in the medium- to long-term due to its strengths, including earnings growth and the pace of business expansion.”

Somphop Keerasuntonpong, managing director of Finansia Syrus Securities, said the IPO price of 2.95 baht per share is appropriate, given the company’s strengths and potential business opportunities. The IPO price also entails a discount for investors.