MAI-listed Silicon Craft Technology Plc (SICT), a radio frequency identification (RFID) microchip R&D firm, began its first day of trade on a high note, with the share price hitting the ceiling with a 200% gain.
SICT shares closed at 4.14 baht, up 2.76 baht from the IPO price of 1.38 baht, in trade worth 158.6 million baht.
SICT achieved the highest closing price on the first day of trade in more than three years in Thailand, with the price increase reaching the ceiling 200% immediately after shares debuted on the Market for Alternative Investment.
Investors were peckish because the business has increasing growth prospects and the IPO size is small, said Mongkol Puangpetra, executive vice-president for strategy research at KTB Securities Thailand.
He said IPO shares with good fundamentals will usually experience price growth upon listing, with the nature of the business supporting a rally.
SICT has all the favourable characteristics of newly listed securities, therefore the share price will continue edging up in the coming period until it reaches a fair value, Mr Mongkol said.
Market timing is another factor in elevating the share price for the first day of trade, he said.
Although the IPO price is a factor helping to drive up the share price, long-term business potential and company fundamentals are the crux of investor demand, Mr Mongkol said.
MAI president Prapan Charoenprawatt said SICT's focus is the design of integrated circuits or microchips that are crucial components of RFID.
The company operates as an original equipment manufacturer under the SIC trademark for companies in Australia, China, Europe and the US.
SICT makes products in four categories -- immobiliser, animal tag, access control and interrogator -- as well as other products and services such as smart labels and smart sensors.
Chief executive Manop Dhamsirianunt said SICT has operated its business for more than 17 years and develops new products to keep pace with its trading partners' demand.
SICT's products are widely recognised and exported to leading RFID makers worldwide, Mr Manop said.
Proceeds from the IPO will be used as working capital and for investment in equipment, design software and microchip testing, as well as joint ventures with businesses that engage in design and chip development or other innovations that can support the firm's existing operations.
"We hope that SICT will inspire a deeper technology business in Thailand to make a commitment to create and build for growth and stability in the long run, similar to companies in Silicon Valley in the US," Mr Manop said.
SICT has paid-up registered capital of 200 million baht, consisting of 300 million existing common shares and 100 million newly issued shares, with a par value of 0.50 baht each.
