SAF Special Steel Plc, a distributor of premium steel in Thailand, is pushing ahead with its plan for an initial public offering (IPO) on the Market for Alternative Investment (MAI), as the company aims to expand its business domestically.
Money from the sale of shares will be spent to support the development of a new steel and iron warehouse, new machinery and equipment, and the purchase of a modern computerised nitriding furnace, said Pisit Ariyadejwanich, chief executive of SAF Special Steel.
Part of the money will be also used as working capital.
"The company has filed a registration statement and draft prospectus to the Office of the Securities and Exchange Commission for the IPO," said Mr Pisit.
"Up to 80 million shares, or 26.6% of total shares, will be listed on the MAI."
The company expects the Thai industrial sector to keep growing, which will eventually drive up domestic consumption of steel.
The company believes steel prices in the global market will continue to increase, which will affect steel prices in Thailand. The increase is blamed on the impact of the Russia-Ukraine war, which shows no sign of abating.
"The war not only led to higher energy prices, but it also caused a delay in new steel orders and deliveries," said Mr Pisit.
The EAF Long Product Steel Producers Association said earlier the Russia-Ukraine war pushed up domestic steel prices, causing homebuyers and construction firms to shoulder higher expenses.
Steel is among the raw materials experiencing a price hike, following the eruption of the conflict in Eastern Europe.
Russia is a global steelmaker and exporter, but since its invasion of Ukraine, steel manufacturing in Russia and Ukraine has been suspended or shut down.
Various steel products have become more expensive. Steel bar prices also increased, affecting key business sectors, Chaichalerm Bunyanuwat, director of the association, said earlier.
