Strega Co Ltd, Thailand's leading and largest horizontal directional drilling (HDD) contractor, aims to expand its presence in Southeast Asia using the proceeds from a stock listing next year.
The company plans to raise capital with a listing on the Market for Alternative Investment (MAI) by the third quarter of 2014, said managing director John Barton.
The expansion is aimed primarily at Myanmar and thereafter Vietnam and Cambodia.
Marketing efforts will begin in 2014 to establish the company’s presence in Myanmar and to see which sector Strega will concentrate on.
HDD is used in the installation of underground utilities such as oil, natural gas, electricity, telephone and water.
“There is a lot of opportunity in Myanmar, but it is still too early right now," said Mr. Burton. “We still need a big contractor to subcontract HDD work.”
At present, 100% of Strega’s contracting work occurs in Thailand. Strega plans an equal share between domestic and international work in the future.
The company is focused on buying machinery for its highly specialised tasks.
HDD has a high barrier to entry that prevents many big companies from entering the sector, said Mr. Burton, meaning many construction companies are locked into subcontracting work.
Strega is waiting to conclude its 2013 budget year and ‘get signed off by the auditor before beginning its financial restructuring to prepare for the listing.
The company expects 2013 revenue of 200 million baht and a net profit 23% million baht. It intends to grow 15% annuall after 2014.
Strega Co Ltd, Thailand's leading and largest horizontal directional drilling (HDD) contractor, aims to expand its presence in Southeast Asia using the proceeds from a stock listing next year. The company plans to raise capital with a listing on the Market for Alternative Investment (MAI) by the third quarter of 2014, said managing director John Barton. The expansion is aimed primarily at Myanmar and thereafter Vietnam and Cambodia. Marketing efforts will begin in 2014 to establish the company’s presence in Myanmar and to see which sector Strega will concentrate on.HDD is used in the installation of underground utilities such as oil, natural gas, electricity, telephone and water.“There is a lot of opportunity in Myanmar, but it is still too early right now," said Mr. Burton. “We still need a big contractor to subcontract HDD work.”At present, 100% of Strega’s contracting work occurs in Thailand. Strega plans an equal share between domestic and international work in the future.The company is focused on buying machinery for its highly specialised tasks. HDD has a high barrier to entry that prevents many big companies from entering the sector, said Mr. Burton, meaning many construction companies are locked into subcontracting work.Strega is waiting to conclude its 2013 budget year and ‘get signed off by the auditor before beginning its financial restructuring to prepare for the listing.The company expects 2013 revenue of 200 million baht and a net profit 23% million baht. It intends to grow 15% annuall after 2014.
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