Thai Tap Water Supply Plc (TTW), the country's largest private tap-water supplier, plans to be placed back on the SET50 index on the Stock Exchange of Thailand next January.
The SET50 index tracks 50 companies on the market with the largest market capitalisation.
It is revised by the bourse every six months.
TTW last week attended two roadshows, in which 34 foreign investors,mostly from Asia, expressed an interest in holding shares in the company.Potential investors include those from Japan, Hong Kong and Singapore as well as Europeans.
"If we enter the SET50, then we'll be more attractive to foreigners, as some investors only go for companies that are in the SET50," said Somkiat Pattamamongkolchai, TTW's accounting and finance director.
"TTW was in the SET50 during its early years, and now we want to get back in again," he said.
Currently, TTW has a market cap of 29.9 billion baht, whereas the last five companies on the list have a market cap ranging from 20-25 billion baht.
"Foreigners are willing to invest more than Thais and are interested in TTW due to its continuous growth in annual profits," said Mr Somkiat.
In order to enter the SET50, which will be considered again in December,companies must have a free float of at least 20% as well as an active and consistent value of trade.
Around 27% of TTW's investors are foreigners, up from 23% at the beginning of the year. Mr Somkiat expects the figure to reach 30% from the current 27%.
The company has a total 3.9 billion shares available in the market.
TTW will also aggressively expand into the energy business, with income from power accounting for 35% within five years.
Mr Somkiat said he expects revenue of at least 5 billion baht this year, up by 8% from last year.
This year, TTW expects realised revenue of 190 million baht from the acquisition of CK Power, a unit of the SETlisted contractor Ch. Karnchang Plc.
"We also want to increase our revenue sources from other businesses as well such as energy and water management in places that are not under the responsibility of the waterworks authority," said Mr Somkiat.
Currently 95% of the company's revenue is from selling water and the rest from energy and wastewater treatment.
TTW shares closed yesterday on the Stock Exchange of Thailand at 7.60 baht, up five satang, in trade worth 61.2 million baht.
7 September 2012