ICN to offer IPO on MAI this Friday

Information and Communication Networks (ICN), the telecommunications networking contractor, is set to launch an initial public offering (IPO) next Friday to raise funds for its business expansion plan.

The company will be listed on the Market for Alternative Investment (MAI) index and the IPO price is set at 1.84 baht per share. The amount of funds raised from the sale of 120 million shares is projected at 220.8 million baht, which will be used as working capital and to expand the telecommunication business.

The share subscription will be held from Sept 8-12. The company will be categorised in the technology sector on its first trading day.

ICN chief executive Monchai Manepairoj said the company had backlog projects worth 431 million baht in this year’s first half, which are expected to record around 90% of revenue recognition in the second half. The figure does not include other new projects.

Revenue is expected to grow by 80-90% this year as it tallied 377.5 million baht in the first six months, compared with fullyear revenue of 569 million baht in 2016, said Mr Monchai.

The company reported net profit of 27.11 million baht last year.

He said funds raised from the IPO will help the company to have more working capital, allowing it to obtain larger projects from operators such as True Corporation Plc, TOT Plc, and CAT Telecom.

After the IPO, Mr Monchai said ICN will be able to bid for projects valued above 500 million baht, instead of being limited to projects of up to 160 million baht.

The company’s debt-to-equity ratio will also decline to 0.5-0.6 times after the IPO from 1.23 times registered in the second quarter.

As the financial adviser and lead underwriter, Finansia Syrus Securities president Somphop Keerasuntonpong said ICN will place 120 million shares at 0.50 baht par value, comprising 26.7% of total registered capital.

Some 108 million shares or 90% of the IPO shares will be offered to public investors, while the remaining 12 million shares will be offered to employees and directors.

The company’s registered capital after the IPO launch will be 450 million shares worth 225 million baht. Mr Monchai will remain as a major shareholder with a 19.42% stake, followed by the Laohasomboon group and Roongruengpol group at 12.75% each.

The other four co-underwriters are RHB Securities, KGI Securities, Asia Plus Securities, and CIMB Securities.