After the book-building process, JWD, an integrated in-land logistics service provider, has decided to make its IPO shares available for subscription at THB 11 each between 21 and 23 September and make them tradable on the SET on 29 September. It has also designated Kasikorn Securities as its lead underwriter, and is confident that the shares will attract healthy interests from investors. Its management is keen for the company to become a leading player in the Asean logistics market, and has been vigorously expanding and building warehouses in Thailand and neighbouring markets.
On 18 September 2015, JWD Infologistics PCL, or JWD, signed an agreement appointing Kasikorn Securities PCL as its lead underwriter, and Asia Plus PCL, SCB Securities PCL and Tisco Securities PCL as its co-underwriters, for the making of an initial public offering (IPO) of its shares.
Mr Manpong Senanarong, Managing Director, Kasikorn Securities PCL, as Financial Advisor and Lead Underwriter, revealed that, as the highest of the prices obtained during the book-building process on 17 September (THB 10.6 – THB 11.0) was THB 11.0, which reflected JWD’s great business potential, it has been decided to price JWD’s IPO shares at THB 11.0. The shares will be available for subscription between 21 and 23 September and become tradable on the Stock Exchange of Thailand (SET) possibly on 29 September, he said.
JWD’s 120 million IPO shares will represent 20% of the company’s authorised and called-in capital. The company’s current registered capital stands at THB 300 million, divided into 600 million ordinary shares with a par value of THB 0.50 each. 648 million shares have been issued, distributed and paid in. The funds raised from the IPO will be used to finance JWD’s construction and expansion of warehouses in Thailand and other Asean markets, and as working capital.
The company provides fully integrated in-land logistics services. It has five core segments: i) storage and management of general goods, dangerous goods, automobiles and cold chain goods within general and free zones; ii) domestic and cross-border cargo transport (to Laos, Myanmar, etc); iii) removal of household items, office equipment, machinery and tools and items for trade and art exhibitions for corporate and individual customers both in Thailand and abroad; iv) fully integrated document and information storage and management; and v) other services (ie building and warehouse space rental and information technology system development). Its aggregate space that is available for cargo storage is 779,743sq.m.
“JWD has strong fundamentals. It is one of the leading providers of in-land logistics services in Thailand and is expanding its business in other parts of the Asean region in response to the forecasted economic growths after the introduction of the Asean Economic Community (AEC) this yearend. Therefore, we are confident that the company’s strategy to increase its presence both domestically and abroad will win investor confidence and attract investors’ interests in its IPO shares,” noted he.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD, added that his company has great expertise in sophisticated segments (eg storage of chemicals, dangerous goods, automobiles and parts, cold chain goods, etc, which require great precision in temperature control). As JWD has won a 30-year exclusive concession (October 2003 – October 2033) to perform storage and handling of dangerous goods in Laem Chabang port, all the dangerous goods loaded and discharged at the port must be processed through its dangerous cargo warehouse.
JWD has ambition for leadership in the Asean logistics market. This year it will invest more than THB 500 million in projects to increase its cargo storage space and acquire machinery to improve service efficiency. It is also building warehouses with an aggregate space of 6,490sq.m. for general goods and cold chain goods in the neighbouring countries of Myanmar, Laos and Cambodia to satisfy the demands from the booming food retailing business there, with all the projects expected to be completed in Q2/16.
As for investment in Thailand, the company is transforming its warehouses in Laem Chabang port into a 9,000sq.m. LCL consolidation hub and a 6,000sq.m. domestic dangerous cargo distribution centre building, both with the commercial operation dates expected fall in Q1/16. It has also acquired four rubber tyred gantry (RTG) units, which will allow it to stack four to five dangerous cargo containers, thereby serving its customers with greater efficiency.
“We are ready to expand our business robustly. We are building warehouses in Thailand and the rest of the Asean region. With more than 35 years’ experience in the business and a highly efficient warehouse and logistics management software, we stand to grow strongly for the years to come,” said he.