“Suntech Steel Works” filed an IPO of 170 million shares to raise funds on the Stock Exchange of Thailand (SET) with KGI Securities as a financial advisor.
Mr. Singhanat Batsomboon, Chief Executive Officer of Suntec Steel Works Public Company Limited or SUNTEC, revealed that the Company has filed a registration statement and draft prospectus (Filing) with the Office of the Board of Directors. Securities and Exchange Commission (SEC) for the first public offering The total number of IPO shares offered to investors at this time is 170 million shares, or 29.82 percent of the total shares. It is expected to be listed on the Stock Exchange of Thailand (SET) with KGI Securities (Thailand) Public Company Limited as its financial advisor.
Such funding will be used to support the growth of SUNTEC, increasing its credibility. Including increasing competitiveness. The company aims to use the money received from fundraising to repay loans from financial institutions to invest in the EMPOWER project and use it as working capital for SUNTEC and EMPOWER’s business operations.
SUNTEC is a subsidiary of Permsin Steel Works Public Company Limited (PERM), which is a listed company on the Stock Exchange of Thailand. SUNTEC is engaged in the business of processing, distribution, design of roof and wall metal sheet products under the brand “SUNTECH”. to the distribution of equipment related to roof construction (“Metal Sheet Production Business”) Procurement and distribution business of Aluzinc Steel Coil (Galvalume or GL) and Pre-painted Steel which is the main raw material for the production of roofing and wall metal sheet. (Supplying and distributing steel coil business). by investing in the construction of a color coated steel coil factory (“Color coated steel coil business”) under Empower Steel Company Limited (“Subsidiary” or “EMPOWER”), in which SUNTEC holds 90.25 percent of shares.
SUNTEC’s business operations can be divided into 3 groups: 1. Metal sheet roofing business Processing of Aluzinc Steel Sheet and Color Coated Steel Sheet by forming a roof and wall sheet metal according to the drawings and requirements of customers Including the distribution of equipment related to roof construction such as C-section steel purlins and Z-section steel purlins, louver sheets, corner covers. The main target customers are dealers. who buy the company’s products for sale including construction contractors in various projects It has the capacity of roofing sheet and metal wall sheeting at 3,600,000 square meters per year.
2. Procurement and distribution of steel coil business The company sells alu zinc coil and color coated steel coil. By procuring steel coils either from domestic manufacturers or imported from abroad. to sell to both large and small roof sheet manufacturers which will bring the steel coil to be processed into roofing for further distribution The main target customers are metal sheet roof rolling mills nationwide that have equipment for rolling, cutting and folding steel.
3. Color coated steel coil business Operates under EMPOWER by purchasing and importing coils. Enter the paint coating process with modern advanced technology in EMPOWER’s color coated coil factory for both floor and pattern colors such as wood grain, stone pattern, brick pattern, etc. with various levels of color and texture quality. As of July 31, 2022 The construction of the factory is about 95 percent complete and the production line is being tested. It is expected to start commercial production within the fourth quarter of 2022 with a capacity of 100,000 tons per year of color coated steel coils per year.
SUNTEC aims to be a leader in the roofing and wall sheeting industry. by focusing on increasing market share in all customer groups There is a policy to continuously develop the organization in all dimensions. To be a service provider with a complete range of products and services covering design, production, distribution. including providing contract manufacturing services according to the needs of target customers as well as being a leader in recruiting quality steel coils get international standard which is the main raw material for steel roof production by improving product variety and improving product quality at a reasonable price and increase sales channels to cover all target customer groups to create a competitive advantage Including the focus on building a good relationship with customers (CRM) by creating different products to meet the specific needs of customers.
For the overview of operating results during the past 3 years (2019 – 2021), the Group has total sales revenue of 2,510.74 million baht, 2,470.86 million baht and 3,688.54 million baht, respectively, and for the first 6 months of 2021 and Year 2022 is equal to 1,796.14 million baht and 1,851.45 million baht respectively, of which most of the revenue comes from the sale of steel coils. and had a net profit of 66.12 million baht, 60.50 million baht, 268.83 million baht, representing a net profit margin of 2.63%, 2.45%, 7.29%, respectively, and the first 6 months of 2021 and 2022 had a net profit of 196.38 million baht and 20.08. million baht, representing a net profit margin of 10.93% and 1.08%, respectively.
The Group’s net profit growth in 2021 was due to an increase in world steel prices. while selling and distribution expenses are at the same level. or does not vary with sales. In the first 6 months of 2022, the Group’s net profit has decreased. Compared to the same period of 2021, the cost of importing steel products from abroad increased due to the depreciation of the baht from the global economic crisis. Consequently, the Group’s profits have decreased. In addition, EMPOWER will begin production and distribution in late 2022, causing increased employee expenses from many new hires. Listed on the Stock Exchange of Thailand increased, resulting in a decrease in net profit.
However, this fundraising to expand business opportunities to meet the goals and vision Become a leader in Metal Sheet and Color Coated Steel Coil with the most innovative innovations in the ASEAN region Ready to upgrade the steel industry of Thailand to have quality and efficiency.