VGI IPO Baht 35 per share 12-fold Over-subscribed by Institutional Investors; Apr-June’12 quarterly Net Income Jumps 99% YoY

Stocks and Financial Services Press Releases Monday September 17, 2012 12:06
Bangkok--17 Sep--Master Mind Communications

VGI Global Media (VGI) has set the IPO price at Baht 35 per share, which has attracted enormous subscription demand from local and international institutional investors that was 12 times more than the available supply. Subscription by the shareholders of BTS and BTSC will take place during September 19-21 and 24-25 at TISCO’s office, and subscription by the general public on September 28 and during October 1-2. The Company recorded a 99% year-on-year jump in net profit for the April-June 2012 period, and Mr Keeree Kanjanapas foresees much more growth potentials ahead. TISCO, the financial advisor and underwriter, believes the IPO price is appropriate considering the firm’s strong business fundamentals and growth potentials. Given extensive interests by institutional investors during recent road shows, TISCO expects the stock to be well-received by retail investors once it begins trading in the stock market.

Mr. Keeree Kanjanapas, Chairman of VGI Global Media Public Company Limited (VGI), a leading provider of lifestyle media services, revealed that 88 million VGI shares will be sold in an IPO later this month at Baht 35 per share and trading on the Stock Exchange of Thailand is expected to begin on 11 October.

“Listing on the stock market will enhance our businesses, both in terms of prestige and stability, and will also facilitate any required horizontal or vertical expansion in the future,” he said.

Mr. Marut Arthakaivalvatee, VGI’s Director and Chief Executive Officer, noted that the company’s steady growth in the past has been achieved because of the broad vision of the board members and management executives who have effectively capitalized on the changing trends in the advertising industry.

VGI is now a leading media service provider in the mass transit, department store and office building sectors. According to Mr. Marut, VGI’s business has grown robustly over the past three years: in total revenue and net profit, it has recorded Baht 1.137 billion and Baht 100 million, respectively, for the financial year of 1 April 2009 – 31 March 2010; Baht 1.412 billion and Baht 172 million, respectively, for the financial year 1 April 2010 – 31 March 2011; and Baht 2.005 billion and Baht 279 million, respectively, for the financial year 1 April 2011 – 31 March 2012.

“In the first quarter of this financial year, which spans the period from April to June, the consolidated total revenue of VGI and its subsidiaries stood at Baht 654 million, a 36% year-on-year rise from Baht 480 million, while the net profit figure hit Baht 160 million, a 99% year-on-year jump,” added Mr Marut.

Mr. Tanachai Bunditvorapoom, Senior Vice President and Head of Investment Banking Corporate Banking Group of TISCO Securities, VGI’s financial advisor and underwriter, commented that the IPO price of Baht 35 was determined by book building among local and international institutional investors which has reflected the company’s business fundamentals and growth potentials. The 12-fold excess demand for subscription, he said, would lead to strong interests for the stock once it begins trading in the stock market.

Subscription will take place in two sessions. The shareholders of BTS Group Holdings Public Company Limited, or BTS, and of Bangkok Mass Transit System Public Company Limited, or BTSC, can subscribe for up to 26 million VGI shares during September 19-21 and 24-25 at TISCO’s office. They can obtain subscription forms and the prospectus from 18 September 2012 onwards at TISCO’s headquarters, or download the same from 1) VGI’s website at www.vgi.co.th, 2) BTS’s website at www.btsgroup.co.th/th/investor.php, 3) BTSC’s website at www.bts.co.th, or 4) TISCO’s website at www.tiscosec.com.

Subscription for the other portion of 62 million new shares that will be made available to the public will take place on September 28 and during October 1-2 at the offices of TISCO and Bualuang Securities Public Company Limited the lead underwriters, and of the other four underwriters, namely, Capital Nomura Public Company Limited, SCB Securities Company Limited, Asia Plus Securities Public Company Limited and KGI Securities (Thailand) Public Company Limited.


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