JWD Infologistics has secured SEC approval of a stock split, and is ready to offer 120 million IPO shares before having the first trading day in Q3, as part of its plan to expand its fully integrated in-land logistics business across Asean. Ahead of the AEC launch, it is building warehouses for general goods and cold chain goods in Myanmar, Laos and Cambodia.
Mr Manpong Senanarong, Managing Director, Kasikorn Securities PCL, as Financial Advisor, revealed that an SEC filing has been successfully made by JWD Infologistics PCL, or JWD, for making an initial public offering (IPO) of capital-increase ordinary shares.
JWD’s SEC filing is for making an IPO of 120 million ordinary shares, which will represent 20% of the company’s authorised and called-in capital. After the IPO, the company’s amount of issued, distributed and paid-in shares will reach 600 million, with par value at THB 0.50 each.
The company (and its subsidiaries) provides fully integrated in-land logistics and cargo storage services. It has five core segments: i) storage and management of general goods, dangerous goods, automobiles and cold chain goods within general and free zones; ii) domestic and cross-border cargo transport; iii) removal of household items, office equipment, plant machinery and tools and items for trade and art exhibitions for corporate and individual customers both in Thailand and abroad; iv) fully integrated document and information storage and management; and v) other services (ie building and warehouse space rental and information technology system development).
“After SEC approval, JWD and its financial advisor will determine the right time for making an IPO, which is expected to fall in September. We are confident that JWD’s more than 35 years’ experience in the industry and position as a fully integrated logistics service provider will attract investors’ interests in the capital-increase shares,” he said.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD, added that the company has the policy to increase its presence in the fully integrated logistics business across Asean to tap growing opportunities after the upcoming introduction of the Asean economic community (AEC) in 2016. It is building more warehouses with an aggregate space of 6,490sq.m. for both general goods and cold chain goods, eg frozen processed meat, butter, ice cream, etc, in Myanmar, Laos and Cambodia to cater to growing demands among the food retailing businesses there.
Domestically, the company currently has an aggregate space of 775,743sq.m. in general and free zones, including 206,488sq.m. in 40 warehouse buildings and 569,255sq.m. in cargo yards, located at Laem Chabang port (608,187sq.m.), on Krungthep Kritha Road (4,575sq.m.), Sam Wa Road (19,200sq.m.), Bangna-Trat Road KM 19 (94,480sq.m.), Suwinthawong Road in Chachoengsao province (18,905sq.m.) and in Mahachai subdistrict of Samut Sakhon province (27,996sq.m.) and Saraphi district of Chiang Mai province (2,400sq.m.). A total space of 184,000sq.m. is available for management of dangerous goods. As JWD is the sole concessionaire of such business in Laem Chabang port, all the dangerous goods loaded and discharged at the port must be processed through its dangerous cargo warehouse.
JWD’s strengths lie in i) its position as an integrated in-land logistics service provider with capability to meet all requirements of its customers; ii) its focus on sophisticated segments (eg warehousing of dangerous goods, cold chain goods and automotive products, which require great precision and speed); and iii) the state-of-the-art information technology that is developed by one of its subsidiaries, which enables it to respond to customer needs punctually.
JWD’s rental, service and sales revenues grow continuously. For Q1/15, the company’s total revenue stood at THB 618.03 million, a 35.47% q-o-q growth, and net profit at THB 79.06 million, a 131.64% q-o-q jump, thanks to business expansion and acquisition of a cold storage warehouse business.
“Equipped with more than 35 years of domestic experience as a fully integrated logistics service provider, we are now ready to repeat our success in the Asean logistics markets. We will offer logistics services that meet the needs of customers and provide them with maximum satisfaction by employing our highly efficient logistics and warehouse management system,” he said.