Kijcharoen Engineering Electric Plc (KJL), a maker of electrical cabinets and cable systems, is planning to offer 30 million of its shares in an initial public offering (IPO) on the Market for Alternative Investment (MAI) by the end of this year.
According to Yuanta Securities (Thailand), which was appointed as KJL's financial advisor for the IPO, the 30 million shares would be priced with a par value of 0.50 baht each, representing 25.8% of the company's total shares.
Payupat Mahabhol, managing director for investment banking at Yuanta, said the Securities and Exchange Commission approved the IPO and shares would be floated on the MAI by year-end.
"Listing on the MAI will enable KJL to improve its manufacturing and distribution of switchboards, conduits and wiring devices, as well as special fabricated sheet metal parts under the KJL trademark. It should also drive strong expansion of the company's operating results in the long run," said Mr Payupat.
KJL chief executive Kasemsan Sujiwarodom said the company wants to raise funds to modernise production and expand its business to support future growth. Another goal is to reinforce Thailand's international leadership in the production and distribution of electrical cabinets and cable systems, he said.
Proceeds from the IPO will be allocated for the construction of new factories and investment in automation to increase production efficiency, installing a solar rooftop power generation system, as well as investing in KJL Innovation Campus to increase technology development and innovation capabilities, said Mr Kasemsan. Funds will also be used as working capital for the business and to repay short-term loans.
The company's business started with a small factory before expanding later to manufacture electrical cabinets, switchboards, wiring ducts and sheet metal fabrication, as well as special order sheet metal work. KJL used technology from Japan for both the firm's domestic and international customers.
KJL serves customers from various industries and has a strategic partnership with the French firm Schneider Electric, the world's leading manufacturer of electrical products, to license KJL as the manufacturer and seller of Prima iPM electrical switchboard products.
For the period 2019-21, the company reported sales revenue of 754, 708 and 846 million baht, with net profit of 19.5, 91 and 94 million baht, respectively. In the first six months this year, KJL sales revenue reached 503 million baht with a net profit of 65.8 million, growing from 425 million baht in revenue and 47.9 million net profit in the corresponding period of 2021.
"Listing on the MAI supports the company's steady growth in the industry and empowers KJL to be an industry leader in innovation of lighting cabinets, rails, electrical systems, and a full range of custom fabricated sheet metal parts, as well as building a brand for sustainable global growth," said Mr Kasemsan.
