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Thailand: Sakol Energy Plans IPO For NGV Station Expansion

Thailand: Sakol Energy Plans IPO For NGV Station Expansion

The IPO is for the company to raise funds to expand its energy trade

The expansion plans of Sakol Energy Plc’s (SKE) energy businesses is proposed to be met with the proceeds from an initial public offering (IPO).

With the intention to expand its existing natural gas vehicles (NGV) stations business as well as other energy businesses, the company plans to list its shares on the Stock Exchange of Thailand this year to raise funds.

An application for a listing on the Stock Exchange of Thailand had been filed by the company. The company’s paid-up capital is Bt346.40 million while its registered capital is Bt465 million. Up to 237.2 million shares at Bt0.50 each in par value is planned to be offered, representing 25.51 per cent of the total number of ordinary shares of the company in the fourth quarter of this year.

The existing shareholders, at present, control 100 per cent of the shares, with Chief Executive Officer Chutchai Sumethchotimetha holding 72.22 per cent and Nuntee families holding 27.78 per cent respectively. Both groups will hold a combined 74.49 per cent of the shares, after the IPO.

“We plan to invest in NGV-related businesses and other energy projects. First, we will add capacity to existing stations to increase our revenue potential. Also, we will improve our NGV compressing system to raise efficiency. Our next potential project is to open a retail NGV station in Nakhon Sawan under an ex-pipeline project. This project will enhance the company's overall revenues and profitability,” said Chutchai.

Chutchai hopes that with the expected industrial and economic expansion in the Eastern Economic Corridor and in the CLMV countries (Cambodia, Laos, Myanmar and Vietnam), along with the government's investment in mega-projects, there will be a strong increase for fuel demand.

The company had a bright outlook on Thailand's energy industry. Nonetheless, it faced several challenges including the growing demand for renewable energy and fast-changing technology that compels a lot of investment capital. Source: The Nation PWKD06102017

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