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Wednesday 3 November 10:35 PM
Thai Polyplex Plans To Sell 140M-240M Shrs Via IPO DecBANGKOK (Dow Jones)--Polyplex (Thailand) PCL, the world's fourth largest manufacturer and distributor of polyethylene terephthalate film, or PET, plans to sell 140 million to 240 million shares via an initial public offering in December, the underwriter of the deal said Wednesday. "In the most likely scenario, the company will sell around 240 million shares," said Santhat Sanguandikul, assistant managing director at Siam City Securities Ltd., a unit of Siam City Bank PCL (SCIB.TH). The IPO price will be determined via a bookbuilding process late November, while the subscription period and trade debut will be in December, he said. The offering size accounts for around 20%-30% of the company's post-IPO paid up capital of THB700 million to THB800 million, from the current THB560 million. The stock carries a par value of THB1 each. Proceeds from the IPO will be used to repay part of its THB869.3 million long-term debt. Of any remainder, THB300 million to THB400 million will be used to fund its expansion and THB100 million will be used as working capital, Santhat said. As of end June, the company's net margin stood at 21%, while its debt-to-equity ratio was at 0.8 times and will be reduced to less than 0.1 times after the debt repayment, Santhat said. "The company's net margin will remain high despite the higher cost of raw materials as a result of soaring prices of petrochemical products, as it can pass on the increasing costs to its customers," said Santhat. Separately, the company plans to establish a new plant in Turkey in a bid to boost its production capacity to 48,000 metric tons a year from 39,000 tons at present. The move is an attempt to accommodate rising demand for its products in the time of supply shortage. The construction will start December and be completed mid-2005. The company will need around $43 million to fund the project. Of the total funding, THB26 million will be in the form of bank loans, while the remainder will be from the company's own cash flow. -By Maytinee Wasumadee, Dow Jones Newswires; 662-266-0744; djnews.bangkok@dowjones.com
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