Kiattana sets MAI IPO up to B4.8

       Kiattana Transportation will price its initial public offering next month at 4.50 to 4.80 baht per share, according to financial adviser Phillip Securities.
       The company, a transport and logistics operator specialising in industrial materials and hazardous chemicals, will hold its subscription period from Sept 10-11, with a listing on the Market for Alternative Investment on Sept 18.
       A total of 40 million new shares will be offered with a par value of one baht each. Paid-up capital will increase to 200 million baht from 160 million after the offering.
       Vicha Tomana, a vice-president at Phillip Securities, said an IPO price of 4.50 baht represented a discount of 25%from full value.
       Phillip Securities is the lead underwriter for the offering, with Finansia Syrus Securities, Country Group Securities, KT-Zmico Securities and Globlex Securities as co-underwriters.
       Mr Vicha said Kiattana expected profits of 134 million baht this year and 166 million in 2010, resulting in a price-toearnings ratio of 7.56 times for this year and 5.42 next year.
       Kiatichai Monsereenusorn, the KIAT managing director and major shareholder, said first-half profits totalled 60.52 million baht, up from 13.61 million in the same period last year.
       "The NGV transport contract is worth 250 million baht and will run until next year. Our existing customers are also increasing their activity as the economy improves," he said.
       He said the company could negotiate transport prices with customers.
       KIAT is bidding for two new NGV transport contracts, and will also expand its transport routes to Laos.
       Phillip Securities projects KIAT profits of 73 million baht on revenues of 297.17 million in the second half. The broker projects full-year revenues of 550 million baht, up 27% from last year, and profits of 133 million, up 329% from 2008.
       Revenues are projected to rise 10% in 2010, based on oil prices rising 12%. Net profits next year are projected at 165.6 million baht, up 23.97% from 2009, thanks to tax benefits from listing on the MAI.