JR Debuts with a Gain of 38% to ฿7.60, Expecting to Uplevel Competitiveness after Listing

J.R.W. Utility Public Company Limited (JR) opened with a gain of ฿2.10/share or 38.18% to ฿7.60/share on its first trading day in the Stock Exchange of Thailand (SET) on November 30, 2020.

 

The Stock Exchange of Thailand (SET) will list J.R.W. Utility Public Company Limited, a one-stop installation subcontractor for telecommunications, information technology, and electrical systems, on November 30, under the ticker symbol “JR” in the Technology industry group, Information & Communication Technology sector.

The company has a market capitalization at its initial public offering (IPO) of THB 4.18 billion (approx. USD 134.8 million) at 5.50 baht per share.

 

JR’s main business is a turnkey subcontractor of integrated design, procurement, construction and installation of telecommunications & information technology systems, and electrical system. In addition, the company also distributes various equipment related to telecoms, IT, and electrical systems, as well as providing maintenance services. According to / Based on the government’s infrastructure investment plan and the company’s policy on expanding private sector clients, JR’s backlog as of September 30, 2020 was valued at THB 6.17 billion which is expected to gradually generate revenue over the next few years.

JR has a registered paid-up capital of THB 380 million, consisting of 560 million existing common shares, and 200 million newly issued shares with a par value of THB 0.50 each. Out of the total newly issued shares, 184 million shares are allocated to general public, and 16 million shares to the company’s directors, executives, and employees, on November 20 and 23 – 24 at THB 5.50 each, for a total capital raising of THB 1.1 billion. Finansia Syrus Securities pcl is its financial advisor and lead underwriter.

 

Jarun Wiwatjesadawut, Chief Executive Officer of JR, said that the listing on SET will help increase the firm’s capital base, enhance potential in bidding for large-scale projects, uplevel operation and competitive capabilities, while gaining opportunities to grow business in the future so as to offer better returns to shareholders in the long run.

 

JR’s three major shareholders after the IPO are 1) Wiwatjesadawut Group (61.89 percent); 2) U-thairart Group (7.10 percent); and 3) Somchai Praphanchit (1.82 percent). The IPO price was set by a book-building process, equivalent to the price-to-earnings (P/E) ratio of 50 times. The earnings per share is equal to THB 0.11, calculated by using the company’s net profit in the past 4 quarters (October 1, 2019 – September 30, 2020), which calculated by the total shares after IPO (fully diluted). JR’s dividend policy is to pay at a rate of no less than 40 percent of net profit after corporate income tax and legal reserves from the company’s separate financial statement.