Thailand’s Western University is making a back-door listing via the SET-listed Thai-Denmark Swine Breeder Plc. (D-MARK), and the process is expected to be completed in September.
After the back-door listing through a share swap process, Western University will become the majority shareholder in Thai-Denmark at about 96%, with the existing shareholder diluted to 4%, said Kriangkrai Siravanichkan, the president of Capital Link Advisory, the university’s financial adviser.
A back-door listing is a method by which a non-listed company can become publicly listed without going through the process of an initial public offering.
Mr. Kriangkrai said Thai-Denmark is currently listed as a non-performing group and faces delisting next year after its rehabilitation plan failed to make any significant progress in improving the company’s financial performance recently.
Following the share swap process, Thai-Denmark’s shareholders’ equity will become positive, and the stock can return to trading.
He said the next process is to rename the company and solve the free-float problem. The company plans to increase its free float to meet the minimum SET requirement at 15% of the paid-up shares by issuing new shares and warrants.
Western University is owned by Kanchanaburi Education, in which the Jiyachan Group is a shareholder.
It targets annual revenue growth of 20-30%, to be driven by students from China, and in the future plans to grow aggressively through mergers and acquisitions.
He said Western University will be the first “education company” to be listed on the SET
The company is expected to record a 200-million-baht gain from debt restructuring in fiscal 2013 ending next May 31 on top of another 200 million from its operations.
The university has three campuses, in Kanchanaburi, Buri Ram and Pathum Thani provinces, with 7,000 to 8,000 students in total.