Bangkok based factories for rent and condominium developer Chewathai Pcl expects to sell 262 million shares, equivalent to 35 per cent of its registered capital, through an initial public offering (IPO) by the end of March.
Chewathai is a 51:49 joint venture between Thailand-based investors and TEE Development Pte Ltd, a subsidiary of Singapore’s listed real estate developer TEE Land Ltd.
“TEE Development is our strategic partner as it has expertise in construction technology and property business. Raising of funds through Thai bourse will help pave the way for Chewathai to become one of the leading property developers in ASEAN,” Chewathai’s chairman Chartchai Panichewa said.
The company will be traded on the Market for Alternative Investment (MAI). Currently, it has registered capital of 750 million baht, divided into 750 million shares with a par value of 1 baht apiece and 488 million shares are paid up.
Having been in the property development for eight years, it has built both high-rise and low-rise condominiums under the brands of Chewathai and Hallmark. The projects are mostly located in the community area, which is connected to mass transit in Bangkok and surrounding provinces.
He said it planned to roll out two new projects this year. “We are launching our first housing project in Rangsit-Klong 1 this year with the price of 4-5 million baht per unit. We expect the revenue from housing projects will account for 40 per cent of total in the next two or three years,” he said.
The investment size of each project will be around 2-3 billion baht. It will be more active after IPO, but it will strictly control the debt-to-equity level at 1.3-1.6 times.