SPREME opens trading on the first day at 3.42 baht, 31.54% above booking: InfoQuest

SPREME opened its first trading day at 3.42 baht, an increase of 0.82 baht or +31.54% from its IPO price of 2.60 baht.

Globelex Securities said in its analysis that the IPO price of Supreme Distribution PCL is 2.60 baht, a reasonable price, and the consensus is 4.5-5.0 baht.

SPREME operates an integrated ICT business. The company has 3 main types of income:

1) Sales and installation of IT and network systems (88% of sales and service revenues)

2) Maintenance and repair of computer systems and accessories. (Revenue ratio is 8% of income)

3) Computer systems peripheral equipment rental business (4% of total revenue) focuses on government clients, especially educational institutions and government financial institutions. The company is the main distributor of educational software from Microsoft.

In 2023, total income reached 1,276 million baht + 23% year-on-year from bidding on large projects. “Community Digital Hub” achieved a net profit of 157 million baht +58% year-on-year, and a net profit margin of 12.3%, an improvement from 9.6% in 2022. At the end of 2023, the company had a backlog of Its value is approximately 442 million baht which will be gradually recognized as income from 2024 onwards

Number of IPO shares: 200 million shares, worth 0.5 baht, consisting of the existing 20 million ordinary shares of PSN Capital Limited (a subsidiary of the Khanthamolekul family group) and an additional 180 million shares.

The IPO price is calculated based on a historical P/E of 12.29 times, compared to the ICT Group average of 25 times.

The purpose of raising money is 1) to use it as financing to support bids for large-scale projects 2) to purchase companies for business expansion 3) to use as working capital.

Written by InfoQuest News Agency (02 May 2024)

Tags: IPO, SPREME, Supreme Distribution, Thai Stocks

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