SET-listed Wice Logistics is preparing to list subsidiary Euroasia Total Logistics (ETL) on the Market for Alternative Investment (MAI) to raise funds to expand its cross-border logistics business between Europe and Asia.
ETL is a Thai company that provides integrated cross-border transport and plans to float up to 128.76 million shares in its initial public offering (IPO), representing 27% of the company's paid-up capital on the secondary bourse, for 0.50 baht apiece.
ETL managing director Krishavan Chuecharoenchai said the proceeds would be used to expand the company's operations as ETL aims to expand cross-border delivery routes in various countries across Asia and Europe through the integration of transport, both in terms of road and rail.
"The goal is to offer a logistics service that is fast, flexible and efficient in order to support the growing business sector and to meet changing demands among shippers," she said.
The company's group service routes cover China as well as several countries across Southeast Asia, namely Singapore, Malaysia, Thailand, Myanmar, Cambodia, Laos and Vietnam, as well as Hong Kong.
ETL plans to expand rail transport services from China to European countries, under China's One Belt, One Road initiative, which is expected to help promote economic growth in the countries along the route and benefit the global economy.
Thailand's major trading counterpart is China, whose trade value ranks first among all modes of transport. The value of express transport bills increased from 37.3 billion baht in 2020 to 44.1 billion in 2021, reflecting the surging demand for goods transport, she said.
"Land transport can meet such needs, as there is a transit time faster than water transport, while there is certainty in the transit time," said Ms Krishavan.
"There are more cost-effective service rates compared with other forms of transport. This type of transport has grown considerably."
Chudet Kongsoonthorn, Wice's managing director, said the company is preparing to become Asia's leading logistics service provider within the next three years by striving to enhance growth in all business dimensions.
Last year, Wice saw a drop in total revenue from 7.66 billion baht in 2021 to 7.13 billion.
The company's profit increased to 554 million baht from 535 million in 2021.
"We have seen the transportation industry progressing and developing continuously, allowing entrepreneurs from both export and import sectors to choose from a variety of shipping methods that suit their transportation conditions," said Mr Chudet.
