The reporter has stated that Asset World Corp Public Company Limited (AWC) is seeking to sell its IPO not exceeding 8,000 million shares at ฿6.00/share on September 25-27, 2019, and expecting to list on the Stock Exchange of Thailand (SET) on October while having Bualuang Securities, Phatra Securities and Kasikorn Securities as financial advisors.
The company is a holding company which invests in hospitality businesses and also retail and commercial buildings. According to the data as of March 31, 2019, AWC is the biggest midscale hotel owners in Thailand with 10 hotels in its operation along with a total of 3,432 rooms. There are five more hotels in the middle of maintenance and renovation. Meanwhile, the company aims to purchase another 12 hotels in the near future as stated in the share purchase agreement in 2019. It is expected that AWC will have a total of 8,500 rooms.
As of June 11, 2019, the company has a registered capital of 32,000,000,000 baht in which 24,000,000,000 baht is a paid-up capital, divided into 24,000,000,000 shares at a par value of ฿1.00/share. After the IPO, AWC will have a registered capital not exceeding 32,000,000,000 baht.
The major shareholders of AWC as of June 11, 2019, consisting of Mr. Charoen Sirivadhanabhakdi and Mrs. Wanna Sirivadhanabhakdi along with TCC Group International Limited, holding 24,000,000,000 shares or 100% of AWC. After the IPO, the ratio will be lowered to 75%.
In 2016-2018, AWC recorded revenue of 9,411.25 million baht, 11,207.55 million baht, 12,415.64 million baht, respectively. Meanwhile, its profit in 2016-2018 was 2,890.73 million baht, 1,372.07 million baht, and 489.04 million baht, respectively. The net profit margin was 30.72%, 12.24% and 3.94%, respectively. The lower profit was due to the higher cost of the company’s financial restructuring in 2017.
In 9M19, AWC recorded revenue at 3,031.53 million baht while its expenses were 2,771.06 million baht and a net profit of 207.22 million baht. As of March 31, 2019, AWC has asset a total of 92,759.15 million baht, the total debt of 67,561.93 million baht and a total from shareholders of 25,197.22 million baht.
AWC has the policy to pay a dividend payment to shareholders not less than 40% of its net profit from the normal operation.