Thailand-based mining business consultant Sahakol Equipment has increased its initial public offering (IPO) shares to 380 million shares, equivalent to 33.6 per cent of paid-up capital, to fund its investment projects domestically and internationally.
It has submitted the second filing to the Office of Securities and Exchange Commission on August 2 and expected to launch the IPO in the fourth quarter this year. Previously, it planned to sell only 230 million shares in the IPO.
“We need to raise more funds to invest in Mae Moh project Phase 8 in Lampang as well as expand our mining business overseas,” chief executive officer Sasavat Sirison told media.
The company won a Phase 8 contract from Electricity Generating Authority of Thailand (EGAT) that will provide 22 billion baht in revenue over the next 10 years, as well as a similar 10-year contract from Hongsa Power, a Laos-based lignite-fired power plant joint venture with Banpu Power, Ratchaburi Electricity Generating Holding and Lao Holding State Enterprise, worth 11 billion baht.
He said it was eyeing opportunities to foray into alternative energy business too particularly solar and wind-turbine business.
Recently, it has made a joint venture with Triple S Eco by holding 15 per cent stake in the JV. However, he declined to disclose further details but said that it was conducting a feasibility of an alternative energy-related project at the moment.
Sahakol Equipment has registered capital of 1 billion baht and holds the concession of the mining operation in Mae Moh Phase 7, Phase 8 and Hongsa Project with a combined value of over 44 billion baht. The company has 800 staff including 30 specialist engineers.
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It reported total revenue of 1.87 billion baht ($54.2 million) in 2015 and the net profit of 82 million baht ($2.4 million). In the first quarter of this year, it generated 681 million baht ($194.5 million) in revenue with the net profit of 71 million baht ($2 million). deal street Asia
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