In the News: 2005
Lombard's Portfolio Company, Somboon Advance Technology, Completes Successful IPO
PR Newswire - January 25, 2005
Somboon Advance Technology Public Company Limited ("SAT") completed its IPO of 74 million shares at a price of Baht 12.90 per share on January 21, 2005. The issuance was popular among institutional and retail investors. The institutional tranche was over- subscribed by over 4 times and the retail tranche was fully subscribed. Shares are expected to begin trading on the Stock Exchange of Thailand on January 31, 2005, under the symbol "SAT".
SAT plans to use the new capital from the offering for construction of its new manufacturing facility in the Rayong Province on the Eastern Seaboard and to repay a portion of its debt.
As the core companies of the Somboon Group, SAT and its subsidiaries, are among Thailand's leading first-tier Original Equipment Manufacturing ("OEM") suppliers of auto parts. Established in 1941, SAT initially focused on dealing and trading vehicle parts. As the business grew, SAT pioneered the manufacturing of automotive spring products in 1962, one of the first such manufacturers in Thailand. SAT later ventured into the manufacturing of other vehicle parts, including drive shafts, brake parts, engine parts and suspension parts, with an emphasis on the one-ton pick-up truck segment. To date, SAT commands 79% of the market share for locally produced axle shafts and has received accolades and various awards for its operational and environmental achievements from major automakers such as Toyota, Honda, Isuzu and Mitsubishi Motors.
In June 2004, The Thailand Equity Fund invested approximately US$8 million in SAT and owns approximately 10.0% of the Company post-IPO. The Thailand Equity Fund is a US$245 million private equity fund sponsored by Lombard Investments , Inc., headquartered in San Francisco, and the International Finance Corporation ("IFC"), part of the World Bank Group. The fund was formed with the support of the Government of the Kingdom of Thailand in order to make private equity investments in operationally competitive Thai businesses. Investors in the fund include the IFC, California Public Employees' Retirement System (CalPERS), Asian Development Bank, DEG (a member of Germany's KfW Group), the Ministry of Finance of the Government of Thailand, and fifteen leading Thai banks and other institutions.
Mr. Thomas Smith, Lombard 's Managing Director in San Francisco, stated, "As one of the premier first-tier suppliers of auto parts in Thailand, SAT represents the fund's foothold in the so-called Detroit of Asia. Thailand continues to attract huge investment flows from nearly all the major automotive manufacturers."