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Don Muang Tollway (DMT), an elevated toll road operator, entered its first day of trading on Friday by rising 10 per cent to 17.60 baht from the initial public offering (IPO) price at 16 baht.
“The listing will help boost the full potential of Don Muang Tollway,” said DMT Managing Director Tarnin Phanichewa, adding that the competitive edge will enable the company to bid for Thailand’s transportation and logistics infrastructure projects.
“The fundraising through IPO will help DMT become a debt-free company, enabling shareholders to gain good returns based on the company’s performance.” he said.
DMT offered newly issued shares to the general public via IPO at 16 baht during April 26- 28 for a total of 2.24 billion baht, with a market capitalization at the IPO price of 18.9 billion baht, according to the Stock Exchange of Thailand’s statement.
The tollway operator has a registered paid-up capital of 6.14 billion baht, consisting of 1.04 billion existing common shares and 140 million newly issued shares, with a par value of 5.20 baht each.
DMT has been granted concession for construction, operation and toll collection of the elevated toll road on the Highway No. 31 Vibhavadi-Rangsit road from Din Daeng to National Memorial, or Don Muang, with a total distance of 21 kilometers. The concession has 13 years left to run.
Analysts at Asia Plus Securities said the appraisal price for DMT is at 20 baht given its stable income from the long toll road concession contract, and its dividend policy to pay no less than 90 per cent of annual net profit after reserves for future business plans and other cashflow considerations.
As of 10.24 am, shares of DMT stood at 18.20 baht per share, jumping 13.75 per cent, with a transaction value of 3.56 billion baht.
[Photo caption: Utraphimuk Expressway, northern Bangkok. Photo credit: website Asian Engineerig Consultants Corp. Ltd., https://www.aec-th.com/utraphimuk-expressway-don-muang-tollway/]