Bangkok - WHA Utilities and Power PLC (WHAUP) has set an initial public offering (IPO) price for its ordinary shares in a range of 25.25-26.25 Baht. WHA shareholders whose names are on the record date on March 6, 2017, have rights to subscribe WHAUP shares during March 22-24, 2017, and general investors who are patrons of underwriters and the company will be able to subscribe the IPO shares during March 22-24 and 27-28, 2017. WHAUP subscribers will have to pay for the IPO shares at the high end of the price range. If the final IPO price is lower than the high end of the range at 26.25 Baht, the company will return the differences between the reservation and final prices to investors within the period the regulations mention. WHAUP expects its IPO shares will list and make its trade debut on the Stock Exchange of Thailand in early April. Together with this, the company has appointed SCB Securities as its lead underwriter with RHB Securities (Thailand) and Bualuang Securities serving as co-underwriters. Mr. Wisate Chungwatana, Chief Executive Officer of WHAUP, reveals that he is confident the offering price range of WHAUP shares is suitable for the company’s long term performance. The company is eager to expand its fully integrated utilities and power business in both Thailand and abroad to build its future prospect.
WHA Utilities and Power PLC (WHAUP) will today organize the ceremony to appoint its IPO underwriters including SCB Securities, RHB Securities (Thailand) and Bualuang Securities to sell up to 229.5 million WHAUP shares to the public. Out of the total 229.5 million shares, 125 million newly issued shares will be offered for public subscription together with 104.5 million existing shares of H-International (SG) Pte. Ltd. The share par value is 5 Baht each.
Ms. Veena Lertnimitr, Executive Vice President, Primary Distribution, Siam Commercial Bank (SCB), the financial adviser of WHAUP and the representative of lead underwriter SCB Securities, said in the initial public offering process, the price range of WHAUP shares is set between 25.25 to 26.25 Baht. Existing shareholders of WHA Corporation PLC (WHA) whose names appear on the record date on March 6, 2017, before closing for the share registration on March 7, 2017, will have rights to buy WHAUP’s IPO shares at the ratio of 250 WHA shares to 1 WHAUP share. The share subscription for WHA shareholders is during March 22-24, 2017. For general investors who are patrons of the underwriters and the company, they will subscribe the IPO shares during March 22-24 and 27-28, 2017. Both groups of investors are required to pay for the IPO shares of WHAUP at the high end of the price range at 26.25 Baht per share.
“SCB Securities as the lead underwriter for local investors and CLSA Limited as the lead underwriter for foreign investors will together consider the final IPO price for WHAUP after the book building with institutional investors. If the final price is lower than the high end of the range at 26.25 Baht, the company will return the differences between the reservation and final prices to both groups of investors. Therefore, WHAUP is ready to list and trade its shares on the Stock Exchange of Thailand’s energy and utilities sector in early April,” Ms. Veena said.
Meanwhile, Ms. Jareeporn Jarukornsakul, Group Chief Executive Officer of WHA Corporation PLC or WHA Group, the parent company of WHAUP, said the listing of WHA Utilities and Power (WHAUP) on the Stock Exchange of Thailand is an important move for WHA Group, which can assist its subsidiary to become a listed company. WHAUP has a lot of potential and is strong in providing integrated utilities and energy services. For the utilities business, WHAUP supplies raw water and processes water for industrial use as well as managing waste water treatment in Hemaraj Industrial Estates and Hemaraj Industrial Lands. For the energy operations, the company has jointly invested in the power generations and electricity distributions in both Thailand and overseas. Currently, WHAUP has tied with Gulf, Glow, B Grim and Gunkul groups and plans to expand into other utilities services such as gas distribution pipelines and solid waste treatment to energy and community utilities.
Mr. Wisate Chungwatana, Chief Executive Officer of WHA Utilities and Power PLC (WHAUP), said the IPO price range of WHAUP shares is appropriate when compare to its future growth potential. Currently, WHAUP is a fully integrated utilities provider, distributing raw water and processed water for industrial use, as well as managing wastewater treatment, with exclusive right in Hemaraj Industrial Estates and Hemaraj Industrial Lands.
Moreover, the company has invested in energy businesses such as IPP, SPP and VSPP power plants which have produced electricity with a combined capacity of 350 megawatts (according to the investment proportions), as well as some power plants under construction with expected power capacity of 190MW which will produce and sell electricity with combined 540 MW by 2019. The company is now in the planning stage on alternative energy projects to produce electricity from solar cells installed on the roofs of warehouses and rental factories managed by WHA Group with the total space of 2 million square meters. WHAUP is developing a new alternative power plant, waste to energy. In this regard, WHA Energy Ltd, a WHAUP subsidiary, has tied up with Glow and Suez to invest in Eastern Seaboard Clean Energy Ltd with a 33.33% stake. WHAUP also invested in a VSPP project of Chonburi Clean Energy that was chosen by the Energy Regulatory Commission in October 2016 to sell, during a 20-year period, electricity with a capacity of 6.9MW produced from industrial waste with an installed capacity of up to 8.63MW. This makes WHAUP very attractive when compare to other companies in the same business.
The IPO share allocation is 30% of the company’s total ordinary shares and paid-up capitals. The company plans to bring its IPO proceeds to invest in energy-related projects, repay loans to financial institutes, and reserve as working capitals.