Bangkok, 21 October 2019 – S Hotels and Resorts Public Company Limited or ‘SHR’, a flagship hospitality arm of SET-listed Singha Estate Public Company Limited with vision to become “Premier Hotel Investment & Resort Management Company”, plans to offer an IPO of not exceeding 1,437,456,000 shares at the price THB 5.20 per share. Pre-emptive right shares will be allocated during 28-30 October 2019 while shares for public will be offered during 1-5 November 2019 through the network of Krung Thai Bank and CIMB Thai Bank as well as four co-underwriters including Capital Nomura Securities, Maybank Kim Eng Securities (Thailand), Yuanta Securities (Thailand), and Asia Plus Securities. Proceeds will be used for hospitality business expansion, paving its way to become a “Premier Hotel Investment & Resort Management Company” and supporting growing tourism industry.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts Plc or ‘SHR’, revealed that the company is pleased to receive an approval from the Securities and Exchange Commission to offer IPO with not exceeding 1,437,456,000 shares, equivalent to not exceeding 40% of the company’s issued and paid-up shares.
SHR and its financial advisors, Krung Thai Bank Plc and CIMB THAI Bank Plc, along with arrangers and underwriters including KT ZMICO Securities Co., Ltd, CGS-CIMB (Thailand) Ltd., and Credit Suisse (Thailand) Ltd., setting IPO price at THB 5.20 per share. The IPO will be offered to local and overseas investors.
SHR is a holding company that focuses on affordable luxury hotels and resorts located in popular tourist destinations globally. Currently, SHR operates 39 hotels and resorts with total 4,647 rooms in 5 countries, comprising Thailand, Republic of Maldives, Republic of Fiji, Republic of Mauritius and the United Kingdom. Over the past three years, SHR is the best performer in hospitality business in terms of revenue growth and number of rooms, compared with peers listed on the Stock Exchange of Thailand. SHR’s growth is driven by both organic and inorganic approaches.
SHR has a vision to become the leader in hotel investment and resort management that sets a new standard for recreation and living a quality life based on sustainable development philosophy while truly contributing to local communities. Currently, SHR assets arecategorized as following;
During 2016- 2018, the company posted an average growth rate of 63. 1% per year with total revenue of THB 968.0 million, THB 1,074.0 million and THB 2,575. 7 million, respectively. During the first half of 2019, the company recorded the revenue of THB 1,751. 8 million, up 144. 8% from THB 715. 6 million from the same period a year earlier. Earnings before interest, tax, depreciation and amortization (EBITDA) grew consistently on an average of 58.5% per annum over the past 3 years. During 2016- 2018, SHR’s consolidated EBITDA was THB 348.9 million, THB 514.3 million, and THB 877.4 million, respectively. During the first half of 2019, EBITDA was at THB 461.6 million, a 73.5% increase from THB 266 million from the same period last year. The rise of revenue and EBITDA over the past 3 years was mainly driven by an improved management efficiency and an acquisition of 6 Outrigger resorts in 2018.
Mr. De Cuyper said “SHR is a fast-growing holding company that engages in both the management of hotels and resorts and investment in desirable global tourism destinations. We focus on experiential offerings, providing unique travel experiences to meet the market demands at maximum, as well as creating value for our stakeholders. To that end, we aim to set new standards for the quality of leisure and lifestyle, promote collaborative partnerships and improve our corporate governance.”
“SHR targets to double our hospitality presence from the current portfolio of 39 hotels and resorts to 80 properties by the year 2025 at an equivalent of average growth of 15% per year,” Mr. De Cuyper added.
Mr. Chairath Sivapornpan, Chief Financial Officer of S Hotels & Resorts Plc, said “proceeds from the IPO will be used for hospitality business expansion and investment in both domestic and overseas markets. The fund raised will be also used for loan repayment and as working capital for project developments including capital expenditure for renovation on rooms and public areas.”
Mr. Naris Cheyklin, Chief Executive Officer of Singha Estate Plc or ‘S’, the parent company of SHR, said the successful listing of its hospitality arm SHR on the Stock Exchange of Thailand will strengthen Singha Estate’s financial strength, reinforcing its goal to truly become a Global Holding Company by 2020. Singha Estate operates property investment and development in 3 main areas, consisting of commercial & retail, hospitality and residential development.
“After IPO, SHR will remain as Singha Estate’s subsidiary with Singha Estate continuing to be the major shareholder with 58.8% in SHR,” Mr. Naris said.
SHR will be Singha Estate’s third business to be listed on the Stock Exchange of Thailand after residential business Nirvana Daii Plc and commercial business S PRIME Growth Leasehold Real Estate Investment Trust listed in early 2019.
Mr. Naris added that the hospitality and tourism business has continued to grow substantially. Following UNWTO, the number of tourists was recorded at 1.4 billion in 2018, around 6% increase from 2017. Asia has continued to grow considerably with 343 million tourists while Southeast Asia grew by 7%. Besides, UNWTO expected that tourism will continue to grow globally. Especially in Asia, it forecasted a 5-6% growth in 2019 in terms of quality visitor. According to World Travel & Tourism Council or WTTC, tourists look to explore places where they can experience local uniqueness, access to rich and beautiful nature and explore ecotourism.
“Hospitality business has long-term potential for business expansion. Besides, SHR’s hotels and resorts are ready to grow further. We have 39 hotels, operating 4,647 rooms and all of them are in global popular tourist destinations such as Republic of Maldives, Republic of Fiji, Republic of Mauritius, the United Kingdom and Thailand. Supported by strong capital for business expansion worldwide and the firm’s hotel management direction that focuses on sustainable ecotourism, the growth of SHR will support Singha Estate to achieve its goal in truly becoming a Global Holding Company in the future.”
Besides, Mrs. Thitima Rungkwansiriroj, Chief Financial Officer of Singha Estate Plc, concluded that “hospitality” is a major business to generate recurring income for Singha Estate. In 2018, the hospitality business contributed revenue about 34% of the company’s total revenue. The successful listing of SHR will also give a boost and create vast opportunities for Singha Estate’s hospitality business to make an expansion from making hotel investment or acquisition to developing a greenfield project following its financial strength and human resource readiness.
For IPO subscription, the company will offer pre-emptive right shares during 28-30 October 2019 while shares for public will be offered on 1-5 November 2019. Investors who are interested to subscribe SHR IPO shares can contact two arrangers and underwriters – KT ZMICO Securities Co., Ltd and CGS-CIMB (Thailand) Ltd, and four co-underwriters including Capital Nomura Securities, Maybank Kim Eng Securities (Thailand), Yuanta Securities (Thailand), and Asia Plus Securities. Further details and information will be notified later. Investors can seek more information at www.shotelsresorts.com