STX loses form, booking 7% even though fundraising value is only 195 million baht, or will the era of “small stock IPOs” end?

The trend of small-sized IPO stocks, trading on the first day above reservation, may be over with the entry into trading of Stone One Public Company Limited or STX, which sets the IPO price at just 3.00 baht and distributes only 65 million shares. The fundraising value is only 195 million baht, but the price after trading on the mai stock exchange is low.

The movement of trading on the MAI Stock Exchange for the first time for Stone One Public Company Limited or STX opened trading at 2.78 baht, decreasing from the subscription price of 3 baht.

STX engages in the business of quarrying stones and minerals. Including providing complete transportation services to customers at the job site. There are 2 mining concessions: 1, Nong Kha Mine, Si Racha District, Chonburi Province. granite production which is used in the construction of buildings, roads, and sold to customers in the Chonburi province. Including the Eastern Economic Corridor EEC and 2 Chom Bueng Mines, Chom Bueng District, Ratchaburi Province. Produce and sell limestone and dolomite minerals. Which is used in the construction industry, cement, glass production, soil balancing or wastewater treatment.

STX has paid-up capital after the offering of 307.13 million baht with a par value of 1.00 baht per share, consisting of 242.13 million existing common shares and 65 million additional common shares, or only 195 million baht raised.

TISCO Securities estimates that operating results in 2024 are expected to increase annual income. from increased public and private investment and will benefit from the disbursement of the government budget which is expected to begin disbursing from May onwards, which is expected to increase demand for construction materials. including dolomite minerals The company’s latest products drive sales growth, with growth of around 50 percent in 2023 due to the launch of powdered dolomite products that can be used in a variety of industries. To strengthen materials such as concrete, glass and mirrors, etc. Based on the construction material price index in the first quarter, it is expected that the average selling price of products in 2024 will be stable from the same period last year.

Profits expand as income increases. Construction demand growth Especially large government projects Help support the company’s profit margin from increased revenue. including income from dolomite minerals which has a higher gross profit margin than the gross profit margin from other types of products Meanwhile, sales and administrative expenses are expected to have no significant changes. In addition, there is profit from the sale of fixed assets that is expected to be added. However, the new mine, which the company expects to start investing in in 2024, may have initial operating costs. causing the total expenses to increase But overall, it is still expected that 2024 will see profit growth.

Raising funds this time to invest in a new mine is appropriate. Because it will help increase the amount of raw materials for the company. which will create future revenue growth And factors that need to be further monitored include the new mine that the company will invest in, located in Ko Chan Subdistrict, Chonburi Province (in the process of submitting a new concession certificate application) and Khao Yoi District, Phetchaburi Province (a concession certificate has been granted for a period of 29 years). year) In addition, the company plans to pay an interim dividend of 0.055 baht/share after approval from the shareholder meeting on 2 May 2024, which will determine the list of shareholders (XD) on 16 May.

Important risks include 1) exploration and procurement of raw materials, 2) changes in reserves, 3) renewal of concession certificates. The preliminary assessment is based on the average PER of similar business operators abroad at 16.02 times. It is considered that the value is appropriate at the IPO price and already has a premium. ■