Origin Property rethinking IPO plans

Bourse shock from bomb stirs uncertainty

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initial public offering (IPO)

Monday night's deadly bombing rocked the local bourse, prompting developer Origin Property Plc to re-evaluate its initial public offering (IPO) scheduled for late next month.

Managing director Peerapong Jaroon-ek said the company was in no rush for the IPO but would instead choose the best time.

"The right time to have an IPO will depend largely on the situation from now on," he said. "If it's calm with no more bombings, our IPO will proceed as scheduled."

The company plans to offer 180 million IPO shares at 50 satang apiece, with Kasikorn Securities as the financial adviser.

Mr Peerapong said Origin would also monitor the situation during the rest of this year for new projects being launched, as the blast would affect the economic outlook and property sector.

It will launch six new projects worth a combined 5.8 billion baht in the second half as planned including the 2.5-billion-baht KnightsBridge@The Ocean Sriracha condominium in Chon Buri province.

"With the market less favourable, we're focusing on real demand at locations without too much supply," Mr Peerapong said. "We also screen customers and require high down payments to avoid speculators."

The project will be a 36-storey tower with 722 units priced from 2 million baht.

About 25% of the units will be offered for sale in roadshows in Japan, Singapore and Guangzhou, China.

"Si Racha is one of only a few zones where demand is consistently high, as it is a regional logistics hub located near industrial estates," Mr Peerapong said.

"Residential demand does not fluctuate like in Pattaya, where tourism is the main driver."

Origin posted a first-half net profit of 230 million baht, up by 3,240% year-on-year, on revenue of 1.08 billion, up by 762%. The sales backlog as of yesterday totalled 5.8 billion baht.

Presales in the period totalled 2.61 billion baht compared with 2.53 billion for all of last year.

It expects 6 billion baht in presales by year-end and 2.8 billion in revenue, up from 2.53 billion and 559 million last year, respectively.

Origin expects to be a top-three condo developer with 20 billion baht in presales by 2018 and a top-five residential developer by 2023.

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