Jane Kongklai Public Company Limited (mai: JPARK) has set the price for the initial public offering (IPO) of under 110 million shares at 3.80 baht/share, which will be offered to individuals at the discretion of the underwriter not less than 82.5 million shares, offered to benefactors of the company under 16.5 million shares, and not more than 11 million shares offered to directors, executives, and employees of the company.
The subscription period is between this 25-27 September through the distributor and underwriter, Finansia Syrus Securities, with co-distributors including CGS-CIMB Securities (Thailand), Krungsri Securities, Phillip Securities, Globlex Securities and UOB Kay Hian Securities (Thailand) have Asset Pro Management Company Limited (APM) as a financial advisor.
JPARK is expected to be traded on the ‘mai’ stock exchange in the service business sector in early October 2023.
JPARK will use the proceeds from the IPO sale of approximately 418 million baht to invest in expanding the Phra Nangklao Hospital parking building project with 6 floors, accommodating 532 cars and 72 motorcycles, with a usable area of 18,242 square meters and commercial space of 2,049 square meters. The project is expected to begin commercial operations in mid-2024, which will create long-term growth for JPARK.
The main income of JPARK’s comes from the parking service business as the hospital’s parking space generates the highest revenue. JPARK plans to expand car parking space in the office area which will begin opening for service next year onwards. JPARK will use said proceeds as a working capital for business operations.
The calculation of the IPO share price is based on the ratio of the share price to net income per share (Price to Earnings Ratio: PER). The offered share price is 3.80 baht per share, representing PER of 23.74 times by calculating net profit per share from net profits in the past 4 quarters from 1 July 2022 to 30 June 2023 at 64.02 million baht divided by the total number of common shares.
JPARK will offer additional common shares, which is equal to 400 million shares (Fully Diluted), and will have earnings per share (EPS) at 0.16 baht per share.
JPARK has a dividends payout policy over 40% of net profits from its specified financial statement after deducting all legal reserves and under JPARK regulations. The Board of Directors will consider paying dividends mainly on the benefits to shareholders and must not have a significant impact on normal operations.
However, the payment of such dividends is subject to change depending on operating results, financial status, financial liquidity, business expansion plan and any other necessity in the future or other factors involved in the management of the company as specified by the Board of Directors and/or shareholders deem appropriate.
Mr. Santiphon Jenwattanapaisarn agrees that the shares he holds 220,000,000 shares, representing 55.00%, will be restricted from selling within 1 year (Silent Period) from the date the shares begin trading on the ‘mai’ Stock Exchange in accordance with the regulations of the Stock Exchange of Thailand (SET). He also agrees that all remaining holding 63,555,220 shares, accounting for 15.89%, will be restricted from selling within six months (lock-up period).
Meanwhile, Ms. Juthamas also agreed to have the shares held 6,444,380 shares, representing 1.61%, subject to a voluntary lock-up Period of six months as well.
For JPARK operating results in the first 6 months of 2023, the company had total income of 254.46 million baht, an increase from the same period of the previous year of 61.42 million baht or an increase of 31.82%, with income increasing in all main business types. In particular, the parking service business (PS) increased by 42.98 million baht because in the first 6 months of 2022, JPARK was still affected by the COVID situation, but was not in this year.
JPARK had a gross profit of 54.69 million baht, representing a gross profit margin of 21.57%, slightly lower than the same period of the previous year due to the non-recurring income and one-time expense items.
Excluding the impact of such items, the gross profit margin after adjusting for the first 6 months of 2023 will be higher than the same period of the previous year. This is mainly due to the recovery of the parking service (PS) business.
As for administrative expenses, financial costs and corporate income tax were at 20.10 million baht, 2.84 million baht, and 4.50 million baht, respectively. As a result, the company had a net profit of 27.82 million baht, an increase of 8.97 million baht from the same period of the previous year, or an increase of 47.57% and representing a net profit margin of 10.97%.
