All 600 million new shares in the initial public offering (IPO) of luxury property developer Pace Development (PACE) have been fully subscribed ahead of the first day of trading on August 7.
Underwriters and advisors believe the price of THB3.50 per share is appropriate and the stock is likely to offer attractive gains to investors.
Dr. Kongkiat Opaswongkarn, Executive Chairman of Asia Plus Securities, on behalf of the lead underwriter of PACE, said the company has received a warm welcome from investors.
He said: “The IPO has been very successful due largely to investors’ confidence in the company’s growth prospect, in line with the expanding real estate industry. Also, the IPO share price quoted at THB3.50 is appropriate and offers a discount of 33 percent from the target price of 5.20 Baht, as projected by Asia Plus Securities. Upon the start of trading on August 7, PACE is likely to receive a good response from investors.”
Sorapoj Techakraisri, Chief Executive Officer of PACE, said that interest in the company’s IPO showed the trust that investors have placed in its business, which has been growing in line with the property industry each year. A rapid expansion has been witnessed in the high-end property and just a few developers are able to satisfy customers’ needs. In addition, economic conditions and other external factors have few impacts on the market demand and prices for this particular segment of the residential market.
“The company would like to express gratitude to all investors who have subscribed to PACE shares,” Sorapoj said.
He added that PACE will continue to expand in the high-end market during 2013 by focusing on prime locations, including Bangkok’s central business district and resort locations. The company has recently invested in a land plot located at Soi Hua Hin 112, Amphoe Hua Hin, Prachuab Kirikhan Province, for construction of the THB2.7 billion MahaSamutr development, comprising 90 luxurious villas. The project has freshly been launched to the public and will be open for reservations in April 2014.
The company has also invested in a land plot located close to Bangkok’s Lumpini Park in Soi Langsuan for construction of THB6 billion 30-storey condominium development.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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