ZEN Announces Handsome Win on IPO Subscriptions, Targeting 340 Restaurants in 2 Years!

Zen Corporation Group Public Company Limited (ZEN) has reported a handsome win on subscriptions for IPO shares by the institutional and retail investors who believe in its business potential.

The company sets the IPO price for subscribers at ฿13.00/share, which was sold on February 7-8 and 11, 2019, having Kasikorn Securities as financial advisor.

ZEN is now ready for its first trading day on 20 February, and it is confident that the listed stock will attract healthy interest. Its management highlighted its strong position as a provider of integrated food services that operates restaurant, franchise and connected businesses. They also emphasized its aggressive plan to open more than 340 restaurants, in addition to the existing 255, in 2019 and 2020 to create long-term growth.

 

Mr. Boonyong Tansakul, CEO of ZEN, noted that the 75 million capital increase shares (which account for 25% of ZEN’s post-IPO issued and paid-up capital) were enthusiastically subscribed by both institutional and retail investors, who recognized the Company’s strong fundamentals and position as a provider of integrated food services that operates restaurant, franchise and connected businesses (delivery, catering, restaurant management, restaurant consultancy and retailing of foods, e.g. ready-to-cook foods, ready-to-eat foods).

 

Due to the growth in the restaurant and franchise businesses following increases in the number of restaurants, ZEN posted impressive nine-month results (January to September 2018), with a total revenue of THB 2.2263 billion (a 21.9% Y-o-Y rise) and a net profit of THB 108.7 million (121% YoY jump).

In 2019, ZEN will open 123 restaurants, 87 of which will be operated by franchisees and the remaining 36 will be operated by its own. In 2020, it will open 255 restaurants, 175 of which will be operated by franchisees and the remaining 50 of which will be operated by its own.

 

As its businesses are about food, a basic human need, ZEN benefits from the overall economic growth and the growth in restaurant industry that is achieved in line with the rising income of the population and the growing urbanization.

Between 2012 and 2017, the restaurant industry grew at an annualized rate of approximately 4.7%. Euromonitor International estimates that the industry’s total market value, which stood at approximately THB 0.84 trillion in 2017, will rise to more than THB 1.05 trillion in 2022.