Unusual Happenings in the Thai Share Market

Bangkok Condo Finder on October 27th, 2015 with

In mid-October a rather unusual situation arose when the three largest shareholders in the ACAP Advisory (ACAP) company decided to sell either all or most of the shares they held in the firm on the same day. What was even more surprising was that allegedly none of the three colluded in any way, claiming they had no idea the others would be offloading their holdings at the same time.

ACAP Advisory is a SET-listed financial advisory and loan management firm and the three largest shareholders controlled around 25 percent of the total volume of shares in the company. In terms of return, the three collectively realized 406 million baht on the one day. [1]

The Office of the Securities and Exchange Commission noted ACAP Advisory’s largest shareholder, identified as Kenuo Lin, sold 14 million of his total holding of 19 million shares. Wiwat Witoontian, the second-largest shareholder, sold 10 million of his 10.54 million shares, and the third-largest shareholder, Saringkarn Sutaschuto, decided to completely relinquish his holdings, selling all of his 7.98 million shares.

Saringkarn Sutaschuto  said he disposed of all his shares because he had resigned from the executive of ACAP Advisory. As he stated, his shareholding only amounted to around six percent of the company’s total, and he did not believe the sale would have any effect on the management of the company.

According to reports, he would not comment as to why all three of the largest shareholders in ACAP sold out at the same time. [2]

As for Wiwat Witoontian, he used to own 49.19 percent of ACAP Advisory, but since 2014 he has gradually sold off his stake and now retains just 0.44 percent of the company.

Part of the reason, of course, may simply be profit taking. Since the end of August the ACAP share price had risen from 10 baht per share to a peak of 16.5 baht. A 65 percent rise in a share price in a Thai company in these straitened economic times in just two months may well have triggered a desire to lock in the substantial profit available, before any market correction could wipe away that gain.

IPO planned by Raja Ferry

As noted in previous commentary, Thailand is witnessing a substantial series of major and middle-ranking companies raising capital by way of initial public offerings (IPOs). It has become an especially popular way for some firms to gain monetary traction quite quickly, and Raja Ferry Port (RP), one of the leading ferry operators in Thailand, will be joining the IPO queue in November. [3]

Raja Ferries Thailand

Raja Ferry management has said it expects to raise between 380 and 684 million baht from its IPO. The IPO price will be discounted between 20 to 25 percent discount and RP plans to sell 38 million shares with a par value of one baht each through the IPO.

The company said it will use the funds raised to repay long-term debt and buy another ferry to serve the tourist trade. The Raja Ferry management believe the number of tourists to Koh Samui and Koh Pa-ngan will surge by two million people annually.

RP’s major shareholder is currently the Chayopas family, who intend to continue to hold the majority stake, although this will drop from its current high of just over 86.5 percent to a little over 67.2 percent.

With a total registered capital of 170 million baht, RP has assets valued at around 748 million baht and a debt-to-equity ratio of 0.56.

Ticon REIT looks to raise extra capital

The Ticon Real Estate Investment Trust (TREIT) informed the Office of Securities and Exchange Commission in early October that it would attempt to raise three billion baht in additional capital in the final quarter of this year.

The fund manager of TREIT said the proceeds would be used to invest in the assets held under Ticon Industrial Connection, which currently consists of 53 warehouse and factory units for rent.

As well as boosting the overall liquidity of the TREIT, management is hopeful of also attracting more investors, both local and international.

After raising three billion baht, TREIT will have reached seven billion baht in total assets, of which 61 per cent is freehold, with the remaining 39 percent as leasehold. The management of TREIT have a policy of paying a minimum of 90 percent of the net profit twice a year. [4]

Solar power set to gain further ground

Super Solar Energy Co, a wholly-owned subsidiary of Superblock PCL recently informed the Stock Exchange of Thailand (SET) that it was acquiring five solar-cell power producers. The acquisitions would amount to a combined investment of almost 14 billion baht. [5]

The five companies Super Solar Energy intends to acquire are AMANUVE Co Ltd (AMN), Energy Serve Co Ltd (ESERVE), Infinite Alternative Energy Co Ltd (IAE), Power Technology International Co Ltd (PTI) andSri Naga Power Co Ltd (SNP).

Between them, these five companies have a total electricity production capacity of 290.05 megawatts (MW).

As the Super Solar Energy company notes on its own website, the acquisitions are in line with its policy of promoting solar power production. The company believes this will enhance its competitiveness and profitability over the longer term.

Super Solar Energy has invested heavily this year, boosting its solar power capacity in Thailand and overseas to 500 MW during 2015.

In June, it signed a memorandum of understanding (MOU) with the Japanese firm Energy Complex to build a 300 MW solar power plant in Japan. The estimated investment will be around 27 billion baht.

In August, Super Solar Energy added a further 17.40 MW of capacity to its books after acquiring four solar cell projects in Thailand.

Although it should prove only a formality, Super Solar Energy will need to put the newest planned acquisitions before a shareholders meeting, which is scheduled to take place on 30 October.

[1] http://www.dealstreetasia.com/stories/thai-listed-acap-advisorys-top-three-shareholders-offload-big-chunk-of-shares accessed 19/10/15

[2] ibid.

[3] http://www.dealstreetasia.com/stories/th-roundup-raja-ferry-plans-19m-ipo-ticon-reit-to-raise-84-7m-more accessed 19/10/15

[4] ibid.

[5] http://www.dealstreetasia.com/stories/thailand-superblock-to-acquire-five-solar-energy-producers accessed 20/10/15

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