MK Restaurant Group, the sukiyaki restaurant chain, will raise as much as 9.11 billion baht in fresh funds from an initial public offering (IPO) that could become the second largest in Thailand this year.
The company has set an indicative price range of 45-49 baht apiece for 185.85 million IPO shares at a par value of one baht, with the final price set this Friday.
The subscription is due next week, and the first day of its trade on the Stock Exchange of Thailand (SET) is set for Aug 15.
Proceeds from the share offering will be used to repay debt and finance an expansion that includes a new central kitchen worth 1 billion baht and a new head office worth 320 million.
As well, 65 new branches will be opened in Thailand and at least three abroad at a total cost of 500-600 million baht.
Asia Plus Securities is its financial adviser for the share offering.
The BTS Rail Mass Transit Growth Infrastructure Fund is the country's biggest IPO this year.
The country's first infrastructure fund, backed by revenue from skytrain fares, mobilised 62.5 billion baht from the public in April.
"Listing on the SET will allow us to grow faster in foreign countries and expand through acquisitions," said MK chairman Rit Thirakomen.
He said he had declined an offer to buy a domestic restaurant, as in his view mergers and acquisitions do not fit well with non-listed companies.
"MK Restaurant is conservative with organic growth of 10-20% a year. Listing on the SET will unlock the advantages of acquisition strategy, and we might push annual growth to above 20%," he said.
Mr Rit said the company expects 10-15% revenue growth this year and is ready for acquisition opportunities.
As of March 31, the company had 395 MK Suki branches and 95 Yayoi Japanese restaurants nationwide.
It has also expanded into three other countries _ 34 restaurants with partners in Japan, one Suki restaurant and four Yayoi restaurants in Singapore and three franchise branches in Vietnam.
Next month, it will open a franchise branch in Indonesia and two new branches in Singapore.
Investors from Myanmar and other neighbouring countries are keen for MK to operate there.
The company also launched three pilot brands _ Tenjin Tepanyaki, Sakata Ramen and Le Petit _ for development.
MK, which has a net profit margin of 14-15%, achieved revenue of 3.42 billion baht for a net profit of 486 million in the first quarter.
Revenue last year amounted to 13.1 billion baht for a net profit of 2.04 billion, up from 10.8 billion and 1.62 billion, respectively, in 2011.
