Two firms entering MAI

Business News : Monday December 10, 2007

IN Brief

Two firms entering MAI

STOCKS :The Market for Alternative Investment will gain two new listings this week, Body Glove (Thailand) and Simat Technologies.

Shares of Body Globe, an apparel and accessories retailer, will begin trading tomorrow under the symbol BGT. The company raised 94 million baht in its initial public offering, with 20 million shares issued at 4.70 baht each, with Seamico Securities the financial adviser.

Funds raised from the offering will be used to expand outlets and distribution channels. Post-IPO, the major shareholders include the Tumwattana family at 37.33% and Goh Koh Beng and Goh Koh Cheng at 18.31% each.

Simat Technologies, a hand-held computer distributor and developer of mobile computing applications, will list its shares on the MAI on Wednesday.

The company floated 18.75 million shares at 3.80 baht each, with Phillip Securities the financial adviser. Major shareholders after the IPO are Grand-Flo Solution Berhad at 36.75% and the Manasilapapan family at 34.50%.

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RCL debt rated BBB+

SHIPPING :Fitch Ratings has affirmed the national long-term rating of BBB+(tha) for Regional Container Lines' outstanding senior unsecured debentures due in 2009. The outlook is stable.

Fitch said the rating reflected RCL's established market position in intra-Asia container shipping, extensive network coverage, a large fleet of relatively young vessels, and frequent sailing schedules. The rating also reflects good cash flow management in a cyclical industry.

RCL shares closed on Friday on the SET at 29 baht, down 25 satang.

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Thai Re ratings raised

INSURANCE :Standard & Poor's has raised long-term local currency counterparty credit and insurer financial strength ratings on Thai Reinsurance Plc by one notch to A. The outlook is stable.

The US ratings agency said the upgrade reflected Thai Re's strong and sustainable earnings, gradually diversifying business portfolio, strong capitalisation and solid position as the country's leading domestic reinsurer, and strong relationship with the primary market.

Moderating factors are the narrow Thai investment markets that restrict the company's investment profile, and its small size compared with regional and international players. However, Thai Re's size is less of a constraining factor as, unlike its peers, it targets only domestic business with low catastrophe risk.

Shares of Thai Re (THRE) closed on Friday at 6.00 baht, unchanged.

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IPP bid winner clarified

CORRECTION :A story on page B1 of Saturday's Business section, under the headline "Four new power plants awarded", stated incorrectly that National Power Supply Co, one of the four winners of independent power producer (IPP) licences, was a unit of Thai Oil Plc. In fact, National Power Supply is wholly owned by SET-listed Advance Agro Plc (AA). National Power Supply has proposed to build a 540-megawatt coal-fired power plant in Chachoengsao to start operating in 2012 or 2013.

By : Bangkok Post