SCM Joyfully Announces an Oversubscribed IPO, Analyst Gives a FV at ฿2.92

Successmore Being Public Company Limited (SCM) has an oversubscription for its IPO during the offering date between 27 August to 1 September 2020, which has been allocated for a total of 150 million shares with a par value of ฿0.50/share at the price of ฿1.90/share.

 

Mr. Prasert Tantayawit, Managing Director Investment Banking as a financial advisor of Successmore Being Public Company Limited (SCM) stated that the company had oversubscription for the IPO due to the ongoing trends that put more interest in IPOs as well as a reasonable IPO price (PE 13.86x prior to capital increase). Mr. Prasert noted that SCM will first debut on September 8, 2020, in SET Index, commerce sector. The company provides high standard products from all over the world through multi-level marketing.

The President Chairman of the Executive Board, Dr. Sittawee Kietchawanun, stated that the company will utilize the funds from IPO as working capital to support its future business expansion as well as to develop new products.

Krungthai Zmico Securities rated SCM’s fair value at ฿2.92/share based on PER 16x with a discount PER from its peer in the commerce sector which is 26x. CAGR of normalize profit in the next three years is expected to increase 24% to 128 million baht, following the expansion of the economy and the network business in Myanmar.