Management of Thai Tap Water Supply Public Company Limited (TTW) confident that the share will continue to receive great interest from investors after its first day of listing. 1Q08 profits almost double from last year.
Today (22 May), 1 billion common shares of Thai Tap Water Supply Public Company Limited (TTW), the Thailand's largest producer and distributor of tap water, with par value of Baht1/share are floated in the Stock Exchange of Thailand (SET) for the first day. The IPO price was at Baht4.20/share. The stock is traded under a ticker "TTW" and listed under Energy and Infrastructure Sector.
TTW is the first tap water company ever listed in the SET. On 20 May, the Company has raised its registered capital to Baht 3,990 million, divided into 3,990 million shares with par value of Baht 1 each. The major shareholders are Ch.Karnchang Pcl. (35.26%), Mitsui Water Holding (Thailand) Co., Ltd.(25.88%), Bangkok Expressway Pcl. (9.24%), Bangkok Bank Pcl. (1.85%), TMB Bank Pcl. (1.71%), company's directors, employees and employees of Waterflow (1.00%) and general public (25.06%).
Prior to today, the company has make public offering to general public. The proceeds will be used to repay the company's short-term debt that was borrowed to acquire Patumthani Waterworks (PTW), which TTW currently has 98% stakes in the company.
Mr.Sompoh Sripoom, managing director of TTW, said the company is confident that the share will continue to receive interest from investors because the company is infrastructure play with good fundamental and continual revenue and profits growth since it was founded in 2004. Moreover, during book building period, institutional, both local and foreign, and retail investors oversubscribe the shares by far margin.
For the company's operation during the first quarter of 2008, the company reported total revenue of Baht 854 million with net profits of Baht 305 million, up from last year's revenue and profits of Baht 480 million and Baht 223 million, respectively.
The company has maximum production capacity of 320,000 cubic meter of waters per day. The company has water buying agreement with Provincial Waterwork Authority (PWA) with 26 years left on the agreement. PTW has maximum production capacity of 288,000 cubic meter of waters per day and will expand capacity by another 100,000 cubic meter/day. The expansion should be completed by the end of 2008. PTW has water buying agreement with PWA with 16 years left on the agreement.