MK Restaurant Group, the sukiyaki chain, set its 185.85 million initial public offering (IPO) shares at 49 baht apiece, the top end of its indicative price, suggesting strong investor risk appetite despite rising domestic economic and political uncertainties.
Mr Rit, MK’s chairman, said IPO proceeds will go to a new central kitchen worth 320 million baht and branch expansion.
Once listed, the stock will carry the symbol M.
Kongkiat Opaswongkarn, the chief executive of Asia Plus Securities, the lead underwriter for the IPO, said the stock received a good response from institutional investors, with 18 times oversubscription during the book building process.
The IPO price of 49 baht, equal to a price-to-earnings ratio of 21.8 times, represents a 35.9% discount compared with the industry average of 34 times, he said.
A 49-baht IPO price will raise 9.1 billion baht from the public, emerging as the second-largest IPO deal this year after the BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF), which raised 62.5 billion in April.
MK Restaurant's indicative price was set in a range of 45-49 baht apiece.
The subscription date for the IPO shares is scheduled from Aug 5-7, with the first trading day set for Aug 15.
Co-lead underwriters are Phatra Securities and Bualuang Securites.
Another eight underwriters are Kasikorn Securities, CLSA Securities (Thailand), CIMB Securities, Trinity Securities, Tisco Securities, Thanachart Securities and Finansia Syrus Securities.
Rit Thirakomen, MK Restaurant's chairman, said proceeds will be used to invest in a new central kitchen worth 320 million baht, branch expansion in domestic and international markets and working capital reserves.
"The new central kitchen is scheduled for completion this October. It can serve at least 1,000 branch restaurants," he said.
The company has 38 MK branches in Japan and Vietnam and four Yayoi restaurants in Singapore.
It plans to open its first branches in Indonesia this quarter.
