- Funds being raised to support expansion in Thailand and Southeast Asia
B.Grimm Power Public Company Limited ‘BGRIM’ has announced its intention to offer 716.9 million newly issued shares under an initial public offering (IPO) at the price of 15-16.5 baht per share. The subscription will be open from 3 – 6 July 2017 and the shares will begin trading on the Stock Exchange of Thailand (SET) on 19 July 2017.
Interested investors are invited to attend B.Grimm Power's Big Panel Roadshow to learn more about "BGRIM" Initial Public Offering (IPO) on Monday 26 June 2017. The company will also share with prospective investors the details of its new power projects with already acquired power purchase agreements that will begin generating income over the next 5 years, as well as its expansion prospects in Thailand and abroad, with a target of reaching 5,000 MW to support the ever-growing power demand.
“B.Grimm Power is one of the largest private power producers in Thailand,” noted Mr Harald Link, Chairman of B.Grimm and B.Grimm Power Group. “In following our vision of ‘Empowering the World Compassionately’, we are expanding our renewable energy business both domestically and internationally.
“At present we have a total of 43 power projects, comprising 28 plants in commercial operation with a total capacity of 1,626 megawatts, 5 projects under construction with a total capacity of 419.1 megawatts, and 10 projects under development with a total capacity of 338.5 megawatts. The total generating capacity of the projects is 2,357 megawatts by 2021.
“B.Grimm Power has been in business for more than 24 years and will continue to make sound contributions to the country,” Mr Link said.
“We are committed to following in the footsteps of our parent company, B.Grimm Group, which has been operating in Thailand for 139 years, and has played a crucial role in supporting the country’s economic development. B.Grimm Power is one of the group’s core businesses, and it demonstrates a strong growth potential. We have secured long-term power purchase agreements with prominent customers, including the Electricity Generating Authority of Thailand, the Provincial Electricity Authority and Electricité du Laos, as well as more than 300 industrial customers in Thailand and Southeast Asia.”
Ms Preeyanart Soontornwata, President of B.Grimm Power, said the IPO underlines the firm’s intention to maximise its business potential. The company already possesses strong all-round competitive advantages, with key strengths in highly efficient and stable power generation and distribution.
“In addition, the company has power plants located in leading industrial estates in Thailand and Vietnam. We utilise advanced, world-class technologies, and have an accomplished management team and engineers who are highly experienced in the power industry.
The company has a clear and robust business growth direction and has strong partnerships both in Thailand and overseas.
The company has a clear and robust business growth direction and has strong partnerships both in Thailand and overseas.
Ms Preeyanart said, “We expect to raise approximately 9,800-10,800 million baht from the IPO, in which the company will offer 716.9 million shares (assuming the over-allotment option is exercised), comprising 651.8 million ordinary shares and no more than 65.1 million shares in a greenshoe option. The company plans to set the offer price at 15.00-16.50 baht per share.
“The funds raised will be used for further investments in SPP and alternative energy projects in Thailand and Southeast Asia, debt servicing, and working capital.”
The IPO is backed by the company’s strong financial performance over the past three years. Its revenue from sales and services grew by 18.2 per cent from 2014-2016 (19,854 million baht, 23,943 million baht and 27,747 million baht, respectively).
The momentum continues in 2017, with the company reporting 7,651 million baht in revenue in the first quarter, an increase of 12.8 per cent from the same period last year.
The normalized net profit for the parent company from 2014-2016 grew by 89.4 per cent (325 million baht, 713 million baht and 1,166 million baht, respectively). In the first quarter of 2017, the company’s profits rose by 11.1 per cent compared to the first quarter of the previous year, to 421 million baht.
EBITDA (earnings before interest, tax, depreciation and amortisation) from 2014-2016 grew by 40.44 per cent (3,804 million baht, 4,900 million baht and 7,494 million baht, respectively). In the first quarter of 2017 the company recorded 2,133 million baht in EBITDA, an increase of 23.3 per cent from the same period the previous year.
In the next five years (2017-2021), there will be at least 15 projects under development (with already secured power purchase agreements), under construction and scheduled for commercial operation as follows:
2017: Xenamnoy 2 - Xekatam 1 hydropower plant in Laos, with an installed capacity of 20 megawatts
(Commercial operation is expected to commence at the end of July 2017)
2018: ABPR3, ABPR4 and ABPR5 cogeneration combined cycle plants in Amata City Industrial Estate in Rayong, Thailand, with a total installed capacity of 399 megawatts. Nam Jae 1 hydropower plant in Laos, with an installed capacity of 15 megawatts
(A total of 414 megawatts for this year)
2019: Nam Kao 1-5 hydropower plants in Laos, with a total installed capacity of 68 megawatts
2020: Bo Thong 1 and 2 wind farms, with a total installed capacity of 16 megawatts
2021: BGPR1 and BGPR2 cogeneration combined cycle plants in VRM Industrial Estate in Ratchaburi, Thailand, with a total installed capacity of 240 megawatts.
“In addition to our continuing investment in the Lao People's Democratic Republic, which includes the development of Sekong 4, a 350-megawatt hydropower project, the company has plans to invest in the new SPP Hybrid Firm project and rooftop PV systems for our industrial customers,” Ms Preeyanart said. “The company is also studying the latest energy storage technologies in order to enhance the capacity and stability of our power supply system during the peak periods.”
B.Grimm Power PCL has recently acquired new power purchase agreements in the Solar Farms for Government Agencies and Credit Co-operatives Phase 2 project, totaling 24 megawatts, with a prospect of receiving an additional 14 megawatts in the near future. Moreover, B.Grimm Power PCL is preparing to develop 3 new replacement SPP projects, each with an installed capacity of 140 megawatts, and is conducting feasibility studies on potential solar energy projects in Malaysia and Cambodia, as well as pursuing other opportunities in the ASEAN region, said Ms Preeyanart.
‘BGRIM’ shares have attracted a lot of interest from investors, including institutional investors both in Thailand and overseas. The company has already received subscription confirmations for 201 million IPO shares at the maximum offered price from prominent international financial institutions, such as Asian Development Bank (ADB), and leading insurance companies in Thailand, including Muang Thai Life Assurance and Thai Life Insurance.
“The IPO is an important move that will enable B.Grimm Power to achieve our goal of generating 5,000 megawatts to empower the Southeast Asia region. The company’s continuing development will create greater value for shareholders and all stakeholders. More importantly, we are making a significant contribution towards strengthening national competitiveness by enhancing the stability of the energy system. This will support the country’s economic and social improvement, and lead to a sustainable and self-sufficient development.”
B.Grimm Power Public Company Limited's Initial Public Offering (IPO) will be open for subscription during 3 - 6 July 2017 at the price of THB 16.50 per share, from the price range of THB 15.00 - THB 16.50 per share. The final offered price is expected to be announced on 7 July 2017.
Interested investors are invited to attend B.Grimm Power's Big Panel Roadshow to learn more about "BGRIM" Initial Public Offering (IPO) on Monday 26 June 2017 at 13:30 - 16:30 hours at Sukree Kaewcharoen Auditorium, 3rd Floor, Building B, the Stock Exchange of Thailand.
Interested investors can obtain the Prospectus and IPO Subscription Form from the following underwriters’ offices:
- Kasikorn Securities Public Company Limited Tel.0-2696-0000
- Bualuang Securities Public Company Limited and Tel.0-2231-3777 and 0-2618-1000
- Phatra Securities Public Company Limited Tel.0-2305-9000
And co-underwriters:
- KT Zmico Securities Co., Ltd.
- SCB Securities Co., Ltd.
- Finansia Syrus Securities Public Co.,Ltd.
- Maybank Kim Eng Securities (Thailand) Public Co., Ltd.
- Asia Plus Securities Public Co.,Ltd.
- DBS Vickers Securities (Thailand) Co., Ltd.
Please note that investment always involves some degree of risk. It’s recommended to first study the prospectus before making a decision.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any portion of this Offering in the United States or to conduct a public offering in the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the Company and its management, as well as financial statements. Copies of this press release are not being, and should not be, distributed in or sent into the United States. This press release should not be used to prepare an article for publication in the United States.
It may be unlawful to distribute these materials in certain jurisdictions. These materials are not for distribution in Canada, Japan or Australia. The information in these materials does not constitute an offer of securities for sale in Canada, Japan or Australia.
About B.Grimm Power Public Company Limited
Empower your investment growth potential with B.Grimm Power, one of Thailand’s leading private power producers with an investment portfolio in Thailand and Southeast Asia. B.Grimm Power is a company under B.Grimm Group, which has been at the forefront of pioneering technological and infrastructure advancements for more than 139 years. We are ready to extend our invitation to investors to be a part of us through our upcoming Initial Public Offering with these unique competitive advantages:
- One of the largest private power producers in Thailand, with assets located in leading industrial estates in the country1
- Extensive experience and expertise in developing SPP combined cycle projects and renewable energy projects
- Dedicated management team with long experience in the power industry
- Robust growth direction from comprehensive business plan comprising future projects with power purchase agreements
- Strong business partnerships in Thailand and abroad
Current Projects
B.Grimm Power has made investments in 43 power plant projects as follows:
- 28 power plants in commercial operation, with a total installed capacity of 1,626 megawatts of electricity and 350 tons per hour of steam.
- 5 projects under construction, with a total installed capacity of 419.1 megawatts of electricity and 90 tons per hour of steam.
- 10 projects under development, with a total installed capacity of 338.5 megawatts of electricity and 60 tons per hour of steam.
B.Grimm Power has been investing in renewable energy projects since 2015. With its commitment to environmental preservation, the company has plans to further invest in solar and wind power projects, which also supports the government’s policy to promote renewable energy. Moreover, the company has invested in a power business in Vietnam and 8 hydroelectric power projects in Laos. The company is conducting feasibility studies on potential power investments in Indonesia, Myanmar, Malaysia, Vietnam, Cambodia and the Philippines.
Future Plans
The following projects are scheduled to enter commercial operation by the year 2021, which will increase B.Grimm Power’s total installed capacity to 2,357 megawatts.
- Cogeneration combined cycle plants with a total installed capacity of 2,111.1 MW of electricity and 500 tons per hour of steam
- Solar power plants with a total installed capacity of 114.2 MW
- Hydropower plants with a total installed capacity of 102.6 MW
- Wind farms with a total installed capacity of 16.0 MW
- Thermal power plant using diesel oil as energy source with an installed capacity of 13.0 MW
Financial Highlights
B.Grimm Power has recorded a strong financial performance in the past three years, with a 17% growth in revenue and 89% growth in adjusted net profit.
Items
|
31 December 2014
|
31 December 2015
|
31 December 2016
|
31 March 2017
|
Total revenue (million baht)
|
19,854.1
|
23,943.1
|
27,746.9
|
7,650.9
|
Total assets (million baht)
|
47,952.8
|
62,793.1
|
76,046.6
|
77,262.1
|
Gross profit (million baht)
|
3,007.4
|
3,750.6
|
5,686.4
|
1,640.6
|
Gross profit margin (%)
|
15.1
|
15.7
|
20.5
|
21.4
|
Normalised net profit of the parent company(1) (million baht)
|
325
|
713
|
1,166
|
421
|
Normalised net profit margin(1) (%)
|
4.0
|
5.3
|
7.5
|
8.9
|
Interest-bearing debt
|
4.6
|
6.3
|
4.8
|
4.3
|
Return on equity (%)
|
7.0
|
1.3
|
234.4
|
41.8
|
- Net profit excluding unrealized foreign exchange gain (loss) and inventory write-off
Strengths
- Highly experienced team: B.Grimm Power is a pioneer among Thailand’s private power producers, having been in this industry since 1993. As such, it has a highly experienced team of management and employees, who have been working with company for more than 20 years, possessing diverse experiences in power purchase agreements; power plant development, design and construction; the operation & maintenance of power plants, transmission & distribution systems and steam pipelines owned by the company; as well as sourcing appropriate funding for power plant investments.
- Investment: B.Grimm Power plays an important role in attracting foreign investments in Thailand, especially in industries that require high power stability and reliability in their production processes, such as the automotive industry.
- High-quality power: One of the key factors behind the company’s success is the customers’ confidence in B.Grimm Power’s capability in delivering high quality power supply with excellent reliability and stability, as well as providing world-class customer services. The company utilises state-of-the-art machinery and equipment sourced from the world’s leading suppliers, enabling the company to produce high quality electricity for its customers.
- Long-term power purchase agreements: The company has a secured and stable revenue stream from long-term power purchase agreements with the Electricity Generating Authority of Thailand (21 to 25 years), Provincial Electricity Authority (25 years) and EDL (25 years). The company has also secured natural gas purchase agreements with PTT, whose contract terms correspond to the company’s PPAs with EGAT. Moreover, the company also has long-term power purchase agreements with industrial customers (5 to 15 years). Electricity and steam are distributed through the company’s transmission & distribution system to over 300 industrial customers in leading industrial estates in Thailand and abroad, including Amata Nakorn Industrial Estate, Amata City Industrial Estate, Bangkadi Industrial Park, Hemaraj Industrial Estate, Laem Chabang Industrial Estate and Amata City Bien Hoa in Vietnam.
Initial Public Offering
- Secondary Market:
- The Stock Exchange of Thailand (SET)
- Industry Group / Sector:
- Resources / Energy & Utility
- Status:
- Approved by SEC
- Objectives: The company is raising funds for
- Investment in projects under construction, including ABPR3, ABPR4, ABPR5, and XeNamnoy 2 - XeKatam 1 hydropower plant
- Investment in projects under development and future projects
- Debt repayment
- Working capital for the company’s operations and other objectives
- The 716,900,000 newly issued shares will be allocated as follows:
- No more than 651,800,000 ordinary shares for subscription
- No more than 65,100,000 shares for the greenshoe option
- Financial advisers and lead underwriters: Kasikorn Securities Public Company Limited, Bualuang Securities Public Company Limited and Phatra Securities Public Company Limited
- Initial purchasers: CIMB Securities (Singapore) Pte. Ltd. and Deutsche Bank AG, Hong Kong Branch
Subscription
Interested investors can obtain the prospectus and subscription form, as well as submit the form and required documents, at the below underwriters’ branch offices:
- Kasikorn Securities Public Company Limited
- Bualuang Securities Public Company Limited and
- Phatra Securities Public Company Limited
- Key dates
- Roadshow: 26th June 2017
- Subscription period: 3rd – 6th July 2017
- First day of trading: Expected to be on 19th July 2017
- Share allocation to institutional investors will be under the discretion of the lead underwriters.
Please note that investment always involves some degree of risk. It’s recommended to first study the prospectus before making a decision.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any portion of this Offering in the United States or to conduct a public offering in the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the Company and its management, as well as financial statements. Copies of this press release are not being, and should not be, distributed in or sent into the United States. This press release should not be used to prepare an article for publication in the United States.
It may be unlawful to distribute these materials in certain jurisdictions. These materials are not for distribution in Canada, Japan or Australia. The information in these materials does not constitute an offer of securities for sale in Canada, Japan or Australia.
