The share price of DHouse Pattana Public Company Limited (DHOUSE) opened ฿0.07/share or 11.67% higher on its first trading day in the Market for Alternative Investment (mai) to trade at ฿0.67/share.
The company is listed in the Property & Construction industry group in the Market for Alternative Investment (mai) with a market capitalization at its initial public offering (IPO) of THB 504 million (approx. USD 16 million).
DHOUSE operates several types of residential property development for sale, comprising single-detached houses, semi-detached houses, townhomes, home offices, and commercial buildings in Maha Sarakham province in the northeastern part of Thailand. The company has gained customer trust particularly in construction quality and viable location. For over a decade, the management team has developed various projects worth approximately THB 2 billion.
Currently, there are four projects under construction for sale, worth THB 1.06 billion, and two future projects for sale, worth THB 735 million. The company’s target customers are company employees, government officials, entrepreneurs, investors, and parents of college students living in Maha Sarakham province and nearby areas.
DHOUSE has a registered paid-up capital of THB 420 million, consisting of 622.80 million existing common shares and 217.20 million newly issued shares, with a par value of THB 0.50 each. It offered the newly issued shares via IPO to general public, of which 162.90 million shares to persons under the underwriters’ discretion or institutional investors; 32.58 million shares to company’s patrons; and 21.72 million shares to the company’s directors,
executives and employees, on October 16 and 19-20 at THB 0.60 each, for a total of THB 130.32 million.
The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 19.87 times, calculated by using the company’s net profit in the past 12 months (July 1, 2019 – June 30, 2020) of THB 25.35 million, divided by fully diluted shares, representing earnings per share of THB 0.03. Asset Pro Management Co., Ltd. is its financial advisor and Phillip Securities (Thailand) pcl is the lead underwriter.
DHOUSE Chief Executive Officer Pongpot Lerdrungporn said that the company focuses on developing quality real estate projects in potential locations with accessibility to public facilities and infrastructure such as schools and university campuses, the city’s major transit routes, and government agencies compound.
All these are to serve the needs of different customer segments in Maha Sarakham province. The listing will help strengthen the company’s financial position and the fund raised will be used for project development as stated in the business and marketing plans, as well as loan repayment to financial institutions and as working capital.
DHOUSE’s major shareholders after the IPO are Lerdrungporn family (52.10 percent), and Kaewwisit family (22.04%). The company’s dividend policy is to pay no less than 40 percent of net profit after all legal reserves.