Habitat Group has set it sights on its initial public offering (IPO) which it has scheduled for the 2nd half of 2019. The Thai developer, which focuses mostly on premium property in Pattaya, hopes to raise as much as THB1.5 billion from its IPO, reports local media.
The company has a total of 6 ready to move and ongoing projects in Pattaya. These are designed for investors and most have rental guarantees. Professional hotel chains, including X2 and Best Western, manage the company’s properties and rent out the units for owners.
Habit will use the proceeds from its IPO to acquire new land plots for future developments. It will also keep nearly 20-30% as working capital. At the moment, the company has a registered capital of THB181 million baht, which it will still look to enhance before the upcoming IPO. The company is estimating that its total pre-sales be THB1.2 billion this year. It will also have a backlog of around THB2 billion in 2017.
“We will recognize the revenue of about THB300 million this year. However, according to our plan, our revenue recognition will surge to THB700 million in 2018 and exceed THB1 billion in 2019 once ongoing projects are completed,” says Chanin Vanijwongse, CEO of Habitat Group, to DEALSTREETASIA.
Chanin entered the field of real estate in 2004 as a personal investor. H eventually decided to become a property developer and went on to establish Habitat Group in 2012. According to his views, the Thai property market in the first 3 quarters of this year should expand slightly when compared to the same period last year. He also believes the market will recover in the 4th quarter due to more stability in the country.
“Those property developers who target the low-priced market will face tough situation, but I believe that the mid to high-end market will still grow around 3-5% this year,” says Chanin.
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