Thanasiri prepares for MAI listing

       The medium-sized property developer Thanasiri Group is preparing to float 50 million new shares through an initial public offering through the Market for Alternative Investment (MAI).
       The company is monitoring the market situation and waiting for a good time to list after its filing was approved by the Securities Exchange Committee in the third quarter, said managing director Sutthirak Sateanraphapayut.
       "We will be the first property developer listed on the MAI. We aim to grow at a steady pace and move to the Stock Exchange of Thailand in the future if our scale can reach the SET's requirements,"he said.
       With Asia Plus Securities as its financial adviser, prior to the IPO the company will increase its registered capital from the current 200 million baht to 250 million.
       Proceeds from the listing would go mainly to reduce debt and expand property projects, particularly in Phuket. The company's debt-to-equity ratio is currently relatively as high at four times.
       According to Mr Sutthirak, the company has some good assets including a 100-rai plot near Kamala Beach and Phuket FantaSea, which it wants to develop into residential and hotel projects over the next three to five years.
       The plots are currently held by its subsidiary Thanasiri Property Development which has registered capital of 50 million baht.
       The group acquired the 100 rai 20 years ago for only 700,000 to 800,000 baht per rai. The land is now worth around 8 million baht per rai. The company would be open to partnerships with firms with high-rise development or construction expertise."We've already talked with several foreign investors but have yet to make any final decision, as we are in no hurry," he said.
       Established 30 years ago under the former name Prasith Pin Klao, Thanasiri has developed shophouses and townhouses in the Rattanathibet and Bang Bua Thong areas of Nonthaburi.
       In the fourth quarter of 2009, it plans to launch two new housing projects on a 10-rai site on Ratchapreuk Road where it will develop 112 townhouses with starting prices at 2.49 million baht per unit.
       Another planned project will have 98 units of shophouses, townhouses, duplex and single houses on a 19-rai site in the Pa Klok area of Phuket, worth a combined 276 million baht.
       According to Mr Sutthirak, the luxury housing market in Phuket has slumped on shrinking demand from foreigners but medium-priced or affordable units for Thais show strong demand.
       The company also plans to develop a low-rise condominium with 79 units priced around 1.5 million baht each in the same area in Phuket next year.
       In the first half of this year, Thanasiri had 300 million baht in revenue and it aims to record around 520-560 million baht by the end of the year, up 30-40%from 400 million in 2008.