Finance / MAI

Editorial Team

MAI welcomes an end-to-end laboratory service provider “AMARC” on October 19

Market for Alternative Investment (MAI) will list Asia Medical and Agricultural Laboratory and Research Center pcl on October 19, under the ticker symbol "AMARC". The company has a market capitalization at its initial public offering (IPO) of 1.22 billion-baht (approx. US$ 32.75 million).

MAI ‘s president Prapan Charoenprawatt

MAI’s president Prapan Charoenprawatt said that AMARC would list and start trading on MAI in the services industry group.

AMARC, a subsidiary of Ladprao General Hospital pcl (LPH), provides end-to-end scientific services in agriculture, food, medicine, agricultural production raw materials, and environment, covering product analysis, tool calibration, farm and factory inspection and certification in compliance with world-class quality system and international standards.

The company’s laboratories are equipped with advanced scientific equipment as well as scientists and specialists in many fields.

AMARC offers services to various customer groups ranging from farmers, manufacturing and processing plants for distribution, to importers and exporters of agricultural products, food and medicine, with all sizes of businesses from small-sized entrepreneurs to leading companies, state enterprises and government agencies. In 2021, the company's revenue derived from inspection and analytical services were approximately 87 % of total revenue.

According to a breakdown by product analysis, 81 % of the total revenue was contributed by the inspection and analysis of agricultural and food product group.

AMARC has a registered paid-up capital of 210 million baht, consisting of 300 million existing ordinary shares and 120 million newly issued shares, with a par value of 0.50 baht each.

It offered 90 million newly issued shares to persons at the underwriters’ discretion, 18 million shares to the company's patrons, and the remaining 12 million shares to the company's directors, executives and employees, during October 5-7, at 2.90 baht each, for a total of 348 million baht.

The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 45.72 times. The earnings per share is equal to 0.06 baht, which was calculated from the company's net profit of 26.64 million baht in the past 12 months (from July 1, 2021 to June 30, 2022), divided by fully diluted shares. Capital Nomura Securities pcl is its financial advisor and lead underwriter, and KGI Securities (Thailand) pcl is a co-lead underwriter.

AMARC’s managing director Chindanai Chaiyong said that the company has had expertise in scientific analysis for over 18 years, with internationally recognized services.

The company’s services have assisted Thailand's agricultural and food products in terms of quality control, as such building confidence, starting from upstream, midstream, to consumers at home and international markets, while creating opportunities for businesses and entrepreneurs. The proceeds arising from fundraising will be used to invest in the purchase of scientific equipment, pay debts, and as working capital.

AMARC’s major shareholders after the IPO are LPH (69.39 % ) and Vongsaengnak family group (2.19 %). The company’s dividend policy is to pay no less than 50 % of net profit from the company’s separate financial statement after corporate income tax, and legal and other reserves.