Sansiri, one of the major property development companies in the country, has announced that its joint venture operation with BTS Group Holdings, and called BTS-Sansiri Holdings, have plans to launch 10 residential projects valued at 21.5 billion baht in the final quarter of this year.

This is a ringing endorsement of the strength of the Bangkok property marketplace and a recognition that despite generally poor economic data for Thailand, there are still plenty of people with money to spend who are looking to purchase in Bangkok.

Sansiri will develop six of the 10 projects, with five being detached-housing estates and the sixth a condominium. The other four projects, all condominiums, will be developed by BTS-Sansiri.

For both Sansiri and its joint venture company, the new raft of projects are aimed at attempting to hit 33 billion baht in presales, which was the target the company had set at the beginning of this year. As at the end of the third quarter, pre-sales figures had reached 20.5 billion baht, with parent company Sansiri logging 12.8 billion baht in presales and BTS-Sansiri Holdings the other 7.7 billion baht.

A company spokesman noted Sansiri and BTS-Sansiri Holdings have jointly transferred 27 billion baht worth of residential property to customers between the start of January and the end of September this year.

The company remains confident that it will hit its overall revenue target of 35 billion baht for 2015, announcing that its revenue for the first six months of the year stood at 17.13 billion baht.

In a related move, BTS Group Holdings notified the Stock Exchange of Thailand (SET) that it had sold half of its 100 percent stake in Nuvo Line Agency Co, to Sansiri for 769.01 million baht. Nuvo owns a valuable property project on Phahonyothin Road and the inference will be that Sansiri will be heavily involved in developing and marketing this parcel.

IPO’s continue apace: JAS Asset launches in October/November 

Retail property operator JAS Asset PCL, a subsidiary of the mobile-phone retailer JayMart PCL, will launch an initial public offering (IPO) priced at 2.77 baht per share between 26 October and the first week of November. The company said it expects to raise 333 million baht.

With a par value of one baht apiece, JAS Asset will sell 120.39 million shares, which equates to 32.5 percent of its registered capital. Pre-booking for shareholders of JayMart will take place between 26 and 28 October. Forty percent of the IPO shares will be available to JayMart shareholders. Other investors will be able to pre-book between 2 and 4 November, with 60 percent of the IPO shares being available to the public and institutional investors.[1]

JAS Asset’s chief executive officer Nongluck Luksanapokin is quoted as saying it would spend 233 million baht on expanding the business and retiring debt. After the IPO the debt-to-equity ratio is expected to be around 1.73.

JAS Asset operates three main businesses: 1. rental retail space for mobile phones and gadgets in department stores under the IT Junction brand; 2. night markets under the J Market brand, and, 3. community malls under The JAS brand.

At present the company collectively has 49 branches, but aims to expand this to 100 by 2019.

JAS Asset made a net profit of 54.80 million baht in 2014 on revenue of 449.52 million baht, or 12.19 percent net profit on turnover. The first half of this year saw revenue of 248.95 million baht, with net profit at 28.53 million baht, or 11.46 percent net profit on turnover.

After launching JAS Asset’s IPO, JayMart is also planning on listing its subsidiary, JMT Plus, a financing business, on the SET by 2017.

JMT Plus will be branching out into the so-called nano-finance sector in December this year. The plan is to set aside 370 million baht for nano-finance, cars for cash and personal loans, expanding this to one billion baht in 2016.[2]

JayMart’s overall plan is to aim all of its subsidiaries to become eligible to be listed on the SET while at the same time it looks for opportunities to purchase existing businesses that look to have the potential to help grow JayMart’s ever-expanding circle.

Power company BCPG also prepares for an IPO

Bangchak Petroleum (BCP), Thailand’s major oil refinery company, has announced that its wholly-owned renewable-power division, BCPG Co Ltd, will be submitting the required paperwork to the Office of the Securities and Exchange Commission (SEC) in March next year for the issue of its initial public offering (IPO).

The IPO will not exceed 170 million shares, or around 30 percent of the registered capital of the company. If the IPO is approved, BCPG aims to be trading on the SET by September 2016.[3]

The current plan is to offer between 10 and 25 percent of the IPO shares to BCP shareholders and the remainder to the public and institutional investors. BCP will retain a 70 percent stake in the company after the IPO.

BCP’s management have been keen to turn BCPG into a major, stand-alone company. In a recent shareholders’ meeting it was agreed BCP would sell its entire renewable energy section of its business to BCPG. This amounts to assets valued at around 10 billion baht with total electricity generating a capacity of 118 megawatts.

These assets include Bangchak Solar Energy Co., as well as other subsidiaries, all of which operate five renewable energy projects with a combined capacity of 48 Megawatts as well as the first phase of a solar power plant with a capacity of 38 megawatts.

Once the transactions are completed, BCPG’s registered capital will jump from two million baht to four billion baht. This will be divided into 400 million baht with a par value of 10 baht per share.

The intention is to raise funds from the stock market which will boost BCPG’s electricity capacity from 118 megawatts to 500 megawatts by 2020. Management understands this will require investment of up to 30 billion baht to achieve, and it expects the IPO will provide around 5.5 billion baht of that. The remainder will be sourced from cash flows and business loans.

[1] http://www.dealstreetasia.com/stories/thai-retail-property-player-jas-asset-aims-to-garner-9-4m-from-november-ipo-plans-to-list-financing-business-subsidiary-in-2017 accessed 12/10/15

[2] ibid.

[3] http://www.dealstreetasia.com/stories/thailand-renewable-power-co-bcpg-to-to-list-170m-ipo-shares accessed 12/10/15