SET President, Mr. Vicharat Vichit-Vadakan, announced that the SET board had approved in principle the listing of Bangkok Aviation Fuel Services Pcl (BAFS) in the Energy sector of the SET. “BAFS is an interesting company for investors, especially because its activities are vital for several industries in the country’s economy, including aviation, tourism, and exports. The company is also a model of good corporate governance in terms of both its internal management systems and auditing, and has even received certification from foreign bodies. BAFS is thus a noteworthy stock for our market and becomes another investment choice for investors in the future.”
BAFS’s listing application is in line with SET general listing criteria regarding profit-based criteria, under which the applicant is required to record only one year of net profit of at least 30 million baht in the year preceding listing application. In 1999, BAFS showed net profits of 216 million baht. BAFS currently has fully paid up capital of 250 million baht, comprising 25 million ordinary shares with a par value of ten baht each. Another nine million shares will be offered in an Initial Public Offering (IPO), which will total its paid up capital of 340 million baht. BAFS will be a fully listed company to be traded on the SET after the IPO to retail investors is complete. This completion date is in accordance with the SET regulation that the IPO be completed within six months of February 21, 2001, the date the company was notified by the SET that it had met the conditions for listing.
BAFS managing director, MR Suphadis Diskul, said, “Bangkok Aviation Fuel Services Pcl (BAFS) is Thailand’s first and only company aviation fuel service company licensed by the Thai government to service every flight at Don Muang Airport. The government’s liberalisation policy of open sky policy has made us confident that BAFS operations have a better trend of being extended to providing aviation fuel services. The company also plans to invest in many projects, such as an aviation fuel delivery pipe network, construction of an aviation fuel depot, and investment to become the aviation fuelling service operator at Suwannaphumi airport. There will be also an expansion to other domestic airports in order to ensure more security for the business. Most importantly, the company has been operated professionally and to international standards acceptable to international airlines worldwide. The company has also received ISO 9002 quality certification from Bureau Veritas (BVQI), which has certified that the company has provided services to an international standard of quality from 1996 onwards. The company has won awards for excellence in corporate governance for SMEs in 2000 from The Institute of Internal Auditors of Thailand. The company expects that after the IPO is completed in 2001, the company’s assets will be increased to 1,942 million baht and shareholders’ equity will be 1,721 million baht, with a debt to equity ratio of 0.13. This will give the company sufficient strength to carry out its future projects.”
After the IPO, the company must have a minimum of 600 retail shareholders, holding a collective stake of not less than 6.8 million shares (equivalent to 20% of paid up capital after the IPO), with shareholdings of management, and persons with power or influence in management, totaling 35% of paid up capital after the IPO (340 million baht) being prohibited from trading for a silent period of six months.
The company has a policy to pay dividends of not less than 50% of net profits on direct income (from providing aviation fuelling services). The company’s operating results from 1997 to the first nine months (Jan-Sept) of 2000 showed rather stable levels of income from aviation fuel services of 631, 758, 692 and 563 million baht. However, the company has been able to maintain its initial profits at a level of 54-60%, with a rate of average net profits of 26%.
The company’s major shareholders comprise Thai Airways International Pcl (31%), Crown Property Bureau (11%), Airports Authority of Thailand (6.72%), and six large oil companies, which collectively hold 48% of shares.
