Dexon Technology, a Thai company that provides pipeline inspection services, has decided to expand its business into the US and the Netherlands by using proceeds from its recent fundraising scheme.
The firm's board of executives approved the plan by setting up a wholly-owned subsidiary named Dexon Technology USA Inc, with registered capital of US$1 million, or around 33.8 million baht.
The firm has also established a subsidiary in the Netherlands called Dexon Technology Europe BV, with registered capital of €0.65 million, or around 24.3 million baht.
The budget comes from the listing of the parent firm on Thailand's Market for Alternative Investment, with Phillip Securities as the underwriter for the offering of 123.18 million shares in its initial public offering (IPO) at the end of March.
Dexon Technology aims to mobilise 120 million baht in funds for its expansion into overseas markets.
The company provides pipeline inspection services, including smart pigging technology, an innovation developed by the firm that is used to detect small cracks in pipelines.
Mallika Kaekla, chief executive of Dexon Technology, said petroleum, oil and gas businesses in the US and Europe are still performing solidly despite ongoing economic issues in these regions.
"The company will continue to follow our expansion plans in these markets after the fundraising," said Ms Mallika.
She said investment in international markets is a strategic move that would yield long-term results, and the company expects its investment into large markets to be successful.
Other than market expansion, the firm also plans to use 60 million baht raised from the IPO for research and development, which is the main focus of the business, while the remainder of the funds would be used for debt repayment and working capital.
Ms Mallika said earlier that her company's strategy to expand overseas would help drive income this year, despite several forecasts of a global recession.
