Home store Chic Republic to launch IPO by year-end

Chic Republic Co, a home furnishing and decoration chain, is scheduled to list on the Market for Alternative Investment in this quarter.

According to chief executive Kijja Pattamasattayasonthi, the company is preparing an initial public offering (IPO) to raise funds for business expansion over the next five years.

Some 360 million shares will be offered to the public via the IPO, Mr Kijja said, adding that some of the proceeds will be used to repay debt and as working capital.

He said the company plans to spend more than 1 billion baht to open five Chic Republic stores locally and internationally over the next five years, starting this year.

The company is currently building three stores: one in Cambodia and two in Thailand.

Chic Republic recently set up a Cambodian company to operate stores in the neighbouring country.

Located at Aeon Mall 2 in Phnom Penh, the 35-million-baht Chic Republic store has space of 3,500 square metres and is scheduled to open by the end of this year.

“We have seen potential in Cambodia because there is no modern home store like us over there,” Mr Kijja said.

In Thailand, the company is building a store in Bangkok’s Ram Intra area on a seven-rai plot, with plans to open in 2019. An Udon Thani branch on six rai will open in 2020.

Each Thai store requires an investment of 250 million baht.

According to Mr Kijja, the company plans to open future branches in major provinces like Chiang Mai, Phuket and Hat Yai.

The company operates four existing Chic Republic branches: three in Bangkok and one at Pattaya.

Mr Kijja said the company hopes for better revenue growth next year as buying power and the property market improve.

Chic Republic expanded its sales network to e-commerce in the second half of this year.

“We believe that the upcoming national election will make people’s sentiment better,” Mr Kijja said. “There will also be a positive impact from foreign investment in the Eastern Economic Corridor, while online business will make our brand more recognised among new customer groups and draw younger customers to visit our physical store.”

Revenue was not disclosed. The company said only that 68% of its revenue comes from retail business and 32% from property.

Vicha Tomana, managing director of Phillip Securities Thailand, Chic Republic’s financial adviser, said the Securities and Exchange Commission recently approved the company’s application for an IPO.

The company’s paid-up capital totals 500 million baht, and registered capital after the IPO is expected to rise to 680 million baht with a par price of 0.50 baht per share, Mr Vicha said.