mai/TERA trading debut

Editorial staff

Market for Alternative Investment (mai) lists Terabyte Plus Plc, an IT equipment distributor and end-to-end IT infrastructure service provider, on April 24, 2024 under the ticker symbol "TERA".

The company has a market capitalization at its initial public offering (IPO) of 420 million baht (approx. US$ 11.49 million).

mai president Prapan Charoenprawatt said that TERA is trading on mai under the Technology industry group.

TERA, a subsidiary of NEX Point Plc (NEX), has two wholly-owned subsidiaries: Cluster Systems Co. and Skyfrog Co.

The group's businesses include designing, installing, and distributing IT equipment, providing comprehensive large-scale information and communication technology (ICT) infrastructure services, distributing and providing cyber security systems, cloud & recurring services, transportation management systems (TMS) software, and data analytics products and services, including training.

The group is a distributor of leading IT brands such as Hewlett-Packard Enterprise (HPE), DELL Technologies, IBM, Microsoft, AWS, VMware, and Veeam. In 2023, the company's revenue from sales and services was equal at 50:50, with medium to large private sector businesses in various industries representing the major customers. As of December 31, 2023, the company had a backlog of 344 million baht.

TERA has a paid-up capital of 120 million baht after the IPO, consisting of 150 million existing ordinary shares and 90 million newly issued ordinary shares with a par value of 0.50 baht per share.

Up to 36 million newly issued shares were offered to NEX's shareholders who were entitled to the pre-emptive rights, up to 41 million shares to patrons of the underwriters, up to 4.5 million shares to the company’s patrons, and up to 8.5 million shares to the company’s and its subsidiaries’ directors, executives, and employees as well as related persons.

The shares were offered to all types of investors between April 3 and 11, 2024, at a price of 1.75 baht per share, for a total of 157.50 million baht in fund raised. The IPO price was equivalent to the price-to-earnings (P/E) ratio of 14.50 times.

The earnings per share is equal to 0.12 baht which was calculated from the company’s net profit in 2023 amounting to 28.96 million, divided by fully diluted shares. Asset Pro Management Co. is the financial advisor, and Beyond Securities pcl and CGS International Securities (Thailand) Co. are the lead underwriters.

TERA chief executive officer Surasit Kiwprasopsak said that the company has been operating for more than 19 years and has continuously been a business partner with internationally recognized product owners. This helps increase competitiveness, and the company has a professional team with expertise to provide good service, and can quickly adapt to technological changes to meet customer needs comprehensively. The proceeds from the fundraising will be used to invest in the cloud system and potential related businesses to support the company's growth, and as working capital.

After the IPO, TERA's major shareholders are NEX, holding (31.88 %), Surasit Kiwprasopsak (8.61 %), and Jirawat Jarutitipun (7.86 %). The company has a policy to pay dividends to shareholders not less than 50 % of the net profit from the company's separate financial statements after all types of reserves as required by law and as specified in the company's articles of association.