Sena IPO Makes 1% Gain As Markets Fall

By Nuntawun Polkuamdee, Bangkok Post, Thailand

Jul. 30–Investors in Sena Development made a modest 1 percent gain yesterday as the firm listed on the Stock Exchange of Thailand.

The developer’s shares closed up, even as the main index fell 1.14 percent and most Asian markets closed lower following an overnight sell-off on Wall Street.

Shares of Sena rose to as high as 2.08 baht per share before settling at 2 baht on trade worth 461.38 million baht, two satang higher than the company’s initial public offering price.

The property developer is the second new listing on the SET this year. Asset Pro Management was the financial adviser and Kim Eng Securities the underwriter for the listing. The company listed 675 million shares in total with a par value of 1 baht per share.

Sena director Kessara Thanyalakpark said the industry outlook for the second half remained positive as interest rates should remain at current low levels.

House presales were in line with expectations and Sena was continuing 4.5 billion baht worth of developments, she said. Funds from the IPO are for land acquisitions and project development. Sena aims to maintain revenues this year at 1.2 billion baht, equal to 2008.

Revenues are set to jump to between 1.5 billion and 1.6 billion baht in 2010 as the economy improves and the company’s current projects — including the Niche Taksin, the Niche Lat Phrao, the Niche Huai Khwang and Sena Grand Home Phase 4 — go to market.

Sena, with 30 years in the property industry, has strong growth potential, said Montree Sornpaisarn, chief executive officer of Kim Eng Securities.

The IPO was priced at a 20-30 percent discount from fair value.