Gunkul rides green wave to solid debut

STOCKS

DARANA CHUDASRI

The boom in green energy is prompting more companies in the sector to raise funds in the capital market.

Gunkul Engineering, a supplier of electrical and green energy equipment, set a hopeful tone on its first day of trading on the Stock Exchange of Thailand (SET)yesterday, opening at 9.80 baht a share.

The shares shot up to the day's peak of 10.40 baht within the first five minutes before closing at 8.60 baht in very heavy turnover worth 1.49 billion baht, rising 59.2 from the initial public offering (IPO)price of 5.40 baht.

Gunkul has registered capital of 400 million baht at a par value of one baht a share, with 100 million baht in new IPO shares. Institutional investors were allocated 30% of the shares and retail investors 70%.

Prasert Tantayawit, a senior vicepresident at Tisco Securities, the underwriter for the IPO, said the price jump on the first day reflected the company's strong fundamentals and high potential for growth in solar power.

Director Sopacha Dhumrongpiyawut said Gunkul earned first-half revenue of 555 million baht and expected the fullyear figure to surpass one billion.

Gunkul is now bidding for Electricity Generating Authority of Thailand projects worth 50 million baht. It has also has won 450 million baht worth of projects abroad, with 250 million to be realised as revenue this year and the rest next year.

BANGKOK POST
20 October 2010