Villa Kunalai “KUN” will launch its IPO to allocate 150 million shares,
expecting to list on the MAI by the year-end and raising fund to develop housing development projects in Bangkok’s four suburban areas
Bangkok – Villa Kunalai Public Company Limited or ‘KUN’, the housing developer under “Kunalai” brand in Bang Bua Thong of Nonthaburi and Chachoengsao provinces with 7 ongoing projects worth 3.9 Billion Baht and two future projects worth 2.17 Billion Baht, plans to seek listing on the Market for Alternative Investment (MAI) and allocate 150 million share in its initial public offering to raise fund to buy new land plots and expand the real estate business with S14 Advisory Company Limited as its financial advisor.
Mrs. Praweerat Dheva-aksorn, Chief Executive Officer of Villa Kunalai Plc or KUN, disclosed that the company is developing housing projects under “Kunalai” brand with its focus on four pillars including potential location (Comfortable), beautiful house in warm community (Appearance), professional teamwork (Reliable), and reasonable price (Economy). Its business slogan is “Kunalai develops space and builds happiness”. The company and its subsidiary are developing 7 current housing projects under 4 main brands, Kunalai Begins, Kunalai Pollen, Kunalai Symphony, and Kunalai Joy. As same as the Company, Villa Vanich Company Limited is its subsidiary developing housing project for sales with its focal location in Greater Bangkok especially Bang Bua Thong District, Nonthaburi province.
Nonthaburi is considered as Villa Kunalai’s strategic location for its housing business and the company has just initiated a new expansion in Chachoengsao province under the Kunalai Joy on 314 project on 24 rais of land. The company sees the potential of this location because it has an economic growth and strong housing demand similarly to Bang Bua Thong area. Moreover, Chachoengsao is a part of the Eastern Economic Corridor (EEC), which is in line with the government’s strategic direction to grow economic activities in this area. It’s a proof that “Chachoengsao will become a new city for residential purpose”, and this can match with the core business strategy of Villa Kunalai which has its strength to develop a new quality residential town.
“Villa Kunalai or KUN” is a center of residential area in the West of Bangkok for more than 10 years, leading the property development in Bang Bua Thong area and perfectly serving housing demand of homebuyers in every aspect. The company has concentrated on implementing its strategy to bring knowledge to develop housing projects under the “Happy living close to the City” concept, CEO of Villa Kunalai said.
Presently, the company has finalized sales of four housing projects valued 1.32 Billion Baht and has 7 ongoing projects worth 3.9 Billion Baht. There are two new projects worth 2.17 Billion Baht for future development including Kunalai Joy 2, the 1.5 Billion Baht duplex and single house project in Nonthaburi, which is expected to kick off sales in the second quarter of 2020, and Villa Vanich, the 672 million baht shophouse project in Bang Bua Thong area, Nonthaburi, which will start construction and launch sales around 2021-2022.
Mrs. Praweerat noted that the company has its plan to seek listing on the MAI and the proceeds are expected to fund the business expansion including the additional purchase of land in Bang Bua Thong area to accommodate growth, and reserve as working capital for future project development in Bangkok’s four suburban areas (north, south, east and west) in line with the company’s business direction and vision. The company aims to strengthen its business and brand, becoming the leader of horizontal property development in Bangkok’s suburbs.
Villa Kunalai plans to launch its IPO and allocate 150 million shares with par value of 0.5 baht per share, equivalent to 25% of the total issued and paid-up shares after the IPO. Currently, the company has its registered capital of 300 million baht, which comprises 600 million ordinary shares (existing paid-up shares 450 million shares and IPO shares 150 million shares), and its paid-up capital is 225 million baht. After the IPO, its paid-up capital will increase to 300 million baht. At the present, the Securities and Exchange Commission (SEC) accepted the filing of Villa Kunalai and it is expected that Villa Kunalai will be able to list and start trading on the MAI around the end of this year.
“Key to success of Villa Kunalai is corporate governance, which is classified into 1) shareholders and business partners as we are committed to having good governance (The company has policy to pay dividends no less than 40%) 2) employee happiness 3) customers who will enjoy our house space, which is worthwhile for living, and 4) society, the heart of Villa Kunalai is to have social responsibility.
Meanwhile, Mrs. Piyapa Jongsathian, Managing Director of S14 Advisory Company Limited, the financial advisor of Villa Kunalai, said Villa Kunalai is the leader and expert in developing horizontal housing project in Bang Bua Thong area. It has business policy to focus on building a completed residential town in Bang Bua Thong.
It is widely accepted that “Kunalai” is the property developer whose brand is strong because its experience and strategy to penetrate the Bang Bua Thong area more than a decade. This makes Kunalai serve need of targeted customers in this zone, making the company’s financial performance grew steadily in the past years. During the past three years, the company posted its total revenue of 297.5 million baht in 2016, 450.38 million baht in 2017, and 447.09 million baht in 2018, while its net profit stood at 5.94 million baht, 10.80 million baht, and 11.56 million baht, respectively. For the first nine months of 2019, it recognized revenue of 461.09 million baht and net profit of 43.15 million baht. The growth of revenue came from rising property sales after the company has gradually closed the projects.
During the first nine months of 2019, the company’s major portion of revenue came from the Kunalai Joy which started transferring since the first quarter to 2019, and the Kunalai Symphony, which has its house designs changed. Single detached houses is the best-selling product for the company.
Besides, Kunalai also got positive impact from the government’s property stimulus measures particularly the reduction of property transfer tax and mortgage registration fee for houses with prices no more than 3 million baht. With all these helpful factors, it will drive the company’s growth potential and strong financial performance , which will lead to sustainable growth in long term.
