IPO plan for WHA subsidiary revived
SET-listed WHA Corporation Plc, Thailand's largest developer of built-to-suit logistics facilities, plans to launch an initial public offering (IPO) for its subsidiary by the end of this year, says chief executive Jareeporn Jarukornsakul.
She said WHA restructured after acquiring a 92.88% stake in SET-listed industrial estate developer Hemaraj Land and Development Plc a year ago, separating its core
business into four groups: logistics, industrial facilitation, utilities and power, and digital.
"The IPO will be for the utilities and power business, which will form a new company. The IPO will be sold to investors by the last quarter of this year," she said, declining to give further details about the size of the IPO.
The plan to launch the IPO was previously delayed as the company's financial advisers were concerned by the domestic economic outlook, which was weak earlier this year with no sign of a full recovery.
But the government's new flagship policy to promote the Eastern Economic Corridor (EEC), which is projected to boost logistics and industrial facilities in the eastern region -- the company's stronghold -- is expected to lend support to WHA. That, among other factors, has revived the IPO plan.
Ms Jareeporn said its utilities and power business would have market capitalisation of more than 10 billion baht covering its power generating, water supplying and waste water treatment businesses.
She said the company also planned to expand its waste water treatment services in eastern areas.
"In the future, industrial sectors in the eastern region of Thailand will grow rapidly and demand on water and electricity supply will grow in tandem. That's why the company has diversified its business ," she said. With the expansion of its utilities-related business, the company expects income from that segment to rise to 25% of total revenues over the next three years, up from 20% at present.
Revenue from its rental business is projected to rise to 20% from 15%, she added. WHA projects total revenue to reach 17 billion baht this year, due largely to the
government's economic stimulus package, especially the policy to boost industrial clusters, which is helping to increase WHA's customer base.