Thai Firm Finances Used Cars, Plans for IPO Next Week.

Byline: Nuntawun Polkuamdee

Dec. 3--Used-car financing company Ratchthani Leasing plans to hold its initial public offering next week, with shares to be listed on the Stock Exchange of Thailand on Dec 19.

The company will issue 16.8 million new shares from Dec 9-11, priced at eight baht each, with a par value of five baht. Employees will also be offered 1.6 million shares at 6.40 baht each, on condition they not sell the shares for at least three months. The lead underwriter for the IPO is Kim Eng Securities.

The share issues will raise the paid-up capital for Ratchthani to 300 million baht from 208 million. Funds will be used to refinance existing liabilities, as well as for business expansion. Ratchthani posted a net loss of 17 million baht in 2001, although it is projecting a profit of 44 million this year.

New lending in 2003 is projected at 1.5 billion baht, more than twice the 700 million baht projected for this year.

Chairman Vivat Chinprapinporn said low interest rates, regulatory support for the leasing industry and the rapid growth of the used-car auto sector would support business expansion through 2003.

He said title transfers for used cars now averaged around 70,000 to 80,000 units per month, more than double the number of new car registrations.