CHIC prepares for IPO of 360 million shares to be listed on the mai around Q4/2018, targeting in 5 years to expand to 5 branches locally and internationally with the expectation of this years revenue to remain unchanged and to grow in 2019.

Real Estate Press Releases Tuesday October 9, 2018 15:31
Bangkok--9 Oct--Work Link da Agency

CHIC prepares for IPO of 360 million shares to be listed on the mai around Q4/2018, targeting in 5 years to expand to 5 branches locally and internationally with the expectation of this year's revenue to remain unchanged and to grow in 2019. The recovery of the purchasing power and the expansion of property projects help stock up the backlog of 156 million baht. Phillip Securities, the financial advisor, believe CHIC's strength of being the first and only home fashion business in Thailand response with confidence of the continuity of the business growth after the capital raising.

Mr. Kijja Pattamasattayasonthi, Chief Executive of Chic Republic Pcl., or CHIC, the distributor of furniture, home decor, and house wares, and the standalone store under the brand "Chic Republic (CHIC) and "RINA HEY", disclosed the Company's plan to expand s branches to another 5 branches. In 2018, there are a total of 3 branches which are under process, namely, 1) Cambodia branch located in Aeon Mall 2, Sen Sok City, Phnom Penh, expecting to be opened within Q4/2018; 2) Ramintra branch, expecting to be opened within 2019; and 3) Udonthani branch, expecting to be opened within 2020.

In addition, the Company's new branch projects to be launched in major provinces in the regions such as Chiang Mai in the northern region and Phuket or Hat Yai in the southern region, etc. Today, there are 4 branches in total which are located in potential areas and the center of big city community. The branches in Bangkok consist of Praditmanutham branch, Bang Na branch, Ratchapreuk branch, and a branch in a province consists of Pattaya branch.

The Company's 2018 revenue growth is targeted to remain unchanged from the previous year with a tendency of growth in 2019 due to the purchasing power recovery and property project expansion, leading to the Company's opportunity to receive more work. CHIC also has a plan to develop its website to serve the E-Commerce distribution which has been operated since Q2/2018 to support the online distribution and strengthen the Online to Offline strategy. This helps customers to easily search for CHIC's products. Moreover, the Company also provides rental spaces at all branches for vendors in order to attract more customers to the branches.

The ratio of the retail and property project businesses based on the 3-year average (2015 – 2018) consists of 68% of retail business and 32% of property project business which is aimed to increase in numbers. As of June 2018, the Company's backlog is at 156 million baht, most of which came from leading property companies and the revenue will be gradually recorded till 2020.

Mr. Vicha Tomana, Managing Director Investment Banking of Phillip Securities (Thailand) Pcl., as the financial advisor disclosed that The Securities and Exchange Commission (SEC) has recently approved the Company's application for an offer for sales of shares to the public and the Company is under the preparation to enlist its shares on the mai in Q4/2018.

The objective of the capital raising is to increase its business operation performance, to invest in branch expansion serving growing customer's growing demand, to pay back financial institutions' debt, and to use as working capital for the business. The Company is the distributor of fully integrated furniture, home decor, house wares, decorating lamps, mattress and bedding, and the standalone store under the brand "Chic Republic (CHIC) and "RINA HEY".

At present, CHIC's paid-up capital is at 500 million baht and after the IPO, its registered capital will be increased to 680 million baht with the par price at 0.50 baht. The Company will issue the IPO of 360 million shares which are accounting for 26.47% of the total issued and fully paid shares of the Company after the IPO.

"CHIC is the extraordinary furniture retail store with beautiful design matched with target group's demand, and it has the opportunity to expand to major provincial city in which the economic growth is dramatically rising. It is the first and only home fashion store in Thailand which has an expertise and standard operation of more than 10 years," said Mr. Vicha.


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