mai welcomes computer graphic company YGG on January 7

Tuesday 07 January 2020 07:51
Market for Alternative Investment (mai) will list Yggdrazil Group pcl (YGG), Thailand's leading computer graphic and animation design company for commercials, films and games, on January 7, under the ticker symbol "YGG," with a market capitalization at its initial public offering (IPO) of THB 900 million (approx. USD 30 million).
mai welcomes computer graphic company YGG on January 7

mai President Prapan Charoenprawatt said that YGG would list and start trading on mai in Services industry group.

YGG provides computer graphic services that meet international standards recognized by leading content producers both in Thailand and abroad. The company has been involved in the creation of well-known films such as China's 3D animation "Nezha", Thailand's film "Homestay" and a Thai series "the Stranded" (or "Kweng") on Netflix, among others. Moreover, YGG is also the game producer and designer of "Home Sweet Home" – a 3D Thai game well-recognized worldwide. Currently foreign customers, led by Chinese and Japanese clients, contribute 67 percent of YGG's total revenue. In 2017 the company allocated some of the stake to SMEs Private Equity Trust Fund (jointly owned by Government Savings Bank and The Stock Exchange of Thailand).

YGG has a registered paid-up capital of THB 90 million, consisting of 135 million existing common shares and 45 million newly issued shares, with a par value of THB 0.50 each. It offered the entire newly issued shares, of which 44.48 million were allocated to general public, 0.13 million to benefactors, and 0.39 million to the company's employees, via IPO at THB 5 each, for a total of THB 225 million during December 25 - 27, 2019. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 68.69 times, calculated by using the company's net profit in the past 12 months (October 1, 2018 - September 30, 2019) of THB 13.1 million, divided by fully diluted shares, representing earnings per share of THB 0.073. Yuanta Securities (Thailand) Co., Ltd. serves as YGG financial advisor and lead underwriter.

YGG Chief Executive Officer Tanat Juwiwat said that the company is committed to becoming one of the global leaders in computer graphic design, animation, and game production. The strategic plans are to create superior work via integrated innovations to continuously sharpen competitive edge; to provide more services in response to customer demands; and to expand business overseas in the future. The fund raised will be used for the expansion of its headquarter and setting up of a new subsidiary in Canada to provide services to customers in North America and Asia regions; and as working capital to open opportunities for the future exponential growth.

YGG's three major shareholders after IPO are Tanat Juwiwat (55 percent), Saroot Tubloy (14 percent) and SMEs Private Equity Trust by the Government Saving Bank #1 (7 percent). YGG's dividend policy is to pay no less than 40 percent of net profit from the company's separate financial statement after corporate income tax and legal reserves.

For more information on YGG, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th ; and for general information, please visit www.ygg-cg.com , and www.set.or.th.