Pluk Phak Praw Rak Mae Public Company Limited, known as Ohkajhu or OKJ, has announced the initial public offering (IPO) price for their stocks at 6.70 baht per share.
The company plans to offer up to 159,000,000 shares with a par value of 0.5 baht each during the subscription period from September 23-25, 2024. Bualuang Securities Public Company Limited acts as the financial advisor, underwriter, and offering manager.
OKJ operates in the business of providing and selling organic food, beverages, and health products under the concept “Be Organic from Farm to Table.” They focus on organic farming and present quality organic food and beverages to enhance their customers’ health.
The IPO stock price is set at 6.70 baht per share. Based on the company’s net profit of 169.08 million baht over the past 12 months, and dividing this by the fully diluted total shares after the IPO, which is 609 million shares with a par value of 0.50 baht per share, the earnings per share are calculated at 0.28 baht per share. This corresponds to a Price to Earnings (P/E) ratio of approximately 24.13 times.
The company’s major shareholders are Chalakon Eakchaipatanakul, Jirayuth Puwapoonpol, and Woradet Suchaibunsiri, who are co-founders. Additionally, Modulus Ventures Co., Ltd., a subsidiary of PTT Oil and Retail Business Public Company Limited (SET: OR), signed an agreement to purchase 31,800,000 existing shares from the co-founders, representing 5.2% of the shares, at the same price as the IPO on the first trading day of OKJ’s stocks using the Big Lot Board to maintain Modulus’s 20% shareholding in the company.
OKJ estimates that it will raise approximately 1,024 million baht through the IPO. The funds will be utilized for:
1) Expanding its business by opening new branches of Ohkajhu, Ohkajhu Wrap & Roll, and Oh! Juice, as well as new brands, renovating existing branches, and expanding distribution channels for approximately 753-759 million baht.
2) Investing in the construction of a new central kitchen, developing machinery and equipment, including facilities such as a washing room and information technology systems to improve production efficiency, raw materials management, transportation, and office facilities, with an estimated cost of 190-230 million baht.
3) Investing and developing machinery, equipment, and utilities to enhance planting efficiency, including the establishment of facilities for quality inspection (In-house lab) with an estimated cost of 30-35 million baht.
4) Repaying loans from financial institutions of up to 50 million baht.
