IEC seeks investor for B4bn scheme
SET-listed The International Engineering Plc (IEC) plans to gear up its 4-billion-baht renewable energy development next year by seeking a new major shareholder and raising funds through existing shareholders, says chairman and group president Bhusana Premanode.
The company is negotiating with a potential new major shareholder to hold a stake of about 20%, he said.
“We will finalise the deal with the potential partner in the third quarter next year,” said Mr Bhusana.
IEC plans to develop output of 75 megawatts of renewable energy by 2017.
The first phase of 20 MW including biomass, biogas and solar power has been completed this year, with 50 MW due to operate in 2016 and the rest in 2017. The company will spend 4 billion baht to finish the plan.
IEC plans to seal a deal with the new major shareholder through a private placement that will raise 2 billion baht, while another 2 billion will be raised through a registered capital increase from existing shareholders.
“The company just turned black last year after it suffered losses for decade. It is very difficult to borrow money from the banks and the energy business is facing a tough time, so we have to raise funds by seeking a new major shareholder and by raising funds from existing shareholders,” said Mr Bhusana.
IEC reported revenue in the first nine months of 41.4 million baht, up from 39.74 million in the same period last year. Most revenue came from the energy business. The former mobile phone and accessories distributor had previously been struggling financially. Several former shareholders faced legal action from the Securities and Exchange Commission for share embezzlement and manipulation.
Mr Bhusana and his allies are a major shareholder with a combined stake of 10%. IEC has more than 26,000 retail investors.
The company has shifted its focus from telecommunications to energy under Mr Bhusana’s management.
He said the company will approach energy companies to partner IEC in its energy development.
“We are looking at people potentially interested in developing renewable energy projects such as Bangchak Petroleum or Ratchaburi Electricity Generating Holding,” said Mr Bhusana.
He is optimistic that the company’s revenue will gradually increase in the future.
IEC shares closed on the SET yesterday at four satang, unchanged, in trade worth 5.5 million baht.