Advice IT Infinite Public Company Limited, or ADVICE, has set the IPO selling price at 3.24 baht per share, preparing to let investors sign up from January 22 to 24, confident that investors will respond well. A strong business fundamental is to foster growth opportunities in line with consumer lifestyles and a full business transition to innovation in the digital age. It is a one-stop center for IT products and services, cementing ADVICE as one of the four major distributors of IT products with the highest sales in the country. Willing to use the funds to raise funds to expand branches – Expand the business, plant the trading flag in SET in January this year, Business Category: Service/Commercial Business Group.
Advice IT Infinite Public Company Limited or ADVICE is offering new ordinary shares to the public for the first time (IPO) with a value not exceeding 170 million shares or 27.42% of the number of shares issued and paid up. Company Expenses After offering additional shares this time, Asia Plus Securities Limited was appointed as underwriter and underwriter.
In addition to the joint distributors and underwriters, KGI Securities (Thailand) Public Limited and UOB Kay Hian Securities (Thailand) Public Limited, as well as the joint underwriters and underwriters. Krungsri Securities Public Company Limited and Yuanta Securities (Thailand) Limited
Ms. Eudrody Santaticul Executive Committee Asia Plus Securities Company Limited, as the underwriter and underwriter for the sale of additional ordinary shares, disclosed that Advice IT Infinite Public Company Limited or ADVICE Company Limited has set the IPO offering price at 3.24 baht per share. Investors will be allowed to subscribe from January 22 to 24, and it is expected to be listed on the Stock Exchange of Thailand (SET) during January. In the service/trading business category for the price of common shares offered at 3.24 baht per share, the price to net income per share ratio (P/E ratio) is equal to 10.00 times, and the net earnings per share are calculated from the company's net earnings over the past 12 months. From October 1, 2022 to September 30, 2023 divided by the total number of post-IPO common shares of 620,000,000 shares (fully diluted).
ADVICE takes into account the P/E ratio for comparisons on the Stock Exchange of Thailand. For the last three months from October 17, 2023 to January 16, 2024, they are used as comparison information. (IT Retail Group) which is in the same business category as the company, namely COM7, has a P/E ratio of 18.63 times, while the company's P/E ratio is indirectly comparable. (IT Products Wholesalers Group), which includes SIS, SVOA and SYNEX, has a P/E of 12.37 – 15.13x, where the share offer price at a P/E of 10.00x is a discount to the average P/E of directly similar companies of around 46.3%.
However, ADVICE is willing to go ahead with a promotion. Provide an IPO summary to individual investors. Highlight the strong fundamentals of the business, highlighting why ADVICE is a leading company. With over 25 years of experience and expertise, we have business operations expertise and are one of the leaders in the IT retail market. With growth opportunities from fully transitioning to innovation in the digital age, it is a comprehensive hub for IT products and services, and is one of the four major distributors of IT products with the highest sales in the country. Therefore, we believe that being a leader in this industry gives us an advantage.
In competition with other operators for trust and business relationships with manufacturers or distributors of products and as a result, ADVICE currently has an ever-increasing retail and wholesale customer base spread across all regions of the country.
Mr. Nat Nathanithikarat The CEO of Advice IT Infinite Public Company Limited or ADVICE said that this IPO will bring fundraising proceeds of approximately 527.3 million baht (after deducting related expenses). ) to be used in 1. Investing to expand the company’s business, including expanding the company’s branches. Making improvements to existing company branches 2. Repaying loans from financial institutions 3. Using it as working capital to purchase products and 4. Investing in improving IT systems.
With confidence that after raising this fund it will support the company's capital base to be stronger. Willingness to expand into new opportunities. And support ADVICE to become the number one IT company in the country. Let all stakeholders join in growing with us. It aims to be part of helping push people in the country to access many IT products and innovations equally in all fields.
Ready to set a target to increase market share through expansion of branches and franchise stores, as well as sales through social commerce. Besides expanding to become an official distributor of Apple products, during the first quarter of 2024, if officially appointed, the company will open an “iStudio by Advice” store to sell the full range of Apple products, including raising additional income through official service centers and product repair. Increase gross margins by adjusting the assortment of products sold and expanding the corporate customer base, in addition to increasing profitability by improving operational efficiency. To reach the goal of maintaining our position as one of the leading companies in retail and wholesale trade of integrated IT products. With steady profit growth combined with sustainable growth together with partners
The company aims to increase its market share over the next three years to drive sales growth. It is expected that there will be a total of 390 storefronts to advise with the opening of an additional 20 branches of the company in potential locations. Focusing mainly on Bangkok and surrounding area we are ready to expand the franchise branches to 30 more locations.
side Ms. Ratchada Kliapatinont General Manager Investment Banking Division 2, KGI Securities (Thailand) Public Company Limited, acting as the financial advisor to Advice IT Infinite Public Company Limited or ADVICE, revealed that for the past operating results over the past three years (2020 – 2022), the company has achieved sales and services income of 12,541.2 million baht, 14,305.8 million baht, 14,388.2 million baht, calculated on the basis of an average growth rate (CAGR) of 8.1 percent annually, with net profit of 233.8 million baht, 430.2 million baht, and 205 .7 million baht. , respectively.
However, during the first nine months of 2023, the company generated sales and service income of 10,336.5 million baht, a decrease of 8.2 percent from the same period last year. This is considered a better decline than the overall market. This is due to adaptation to its natural situation. After increased demand for IT products especially during the Covid-19 situation, resulting in net profits of 136.5 million baht during 9 months of 2023.
The company derives the majority of its income, more than 65 percent, from the retail business of IT products. It is the sale of products through the company's subsidiary channels and online channels, including sales to corporate customers. While another 35% of revenue comes from wholesale IT products to franchise branches and product distributors in various provinces, in addition, the company also has income from service businesses. Which mainly provides repair services for computers and various electronic devices.
As of September 30, 2023, the Company has a total of 338 “consulting” branches, consisting of branches in which the Company operates and owns 110 properties located in Bangkok and its surrounding areas and in important provinces in Thailand. Another 228 franchise branches are distributed among communities in various regions and provinces, covering 75 provinces in all regions of Thailand. Including Lao People's Democratic Republic, the company has a policy of continuous investment in branch expansion. Nowadays the company is the No. 1 distributor of IT products with the largest storefront distribution in the country.
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