Background

Singha Estate Plc (S), formerly RASA, came into the market via a reverse IPO in May 2014, and the stock price has increased substantially from THB ~3 to now THB 8.9

Just this past Friday, the transfer from Rasa to Singha was completed with the Boon Rawd subsidiary Singha Property Management Co and Santi Bhirombhakdi, its major shareholder, acquired SET-listed developer Rasa Property Development Plc in April. Rasa Property later increased its registered capital to 4.71 billion baht from 550 million and changed its name to Singha Estate Plc, with Singha Property Management and Mr Santi major shareholders, holding 56.97% and 31.36%, respectively. Thus now the structure of S is as follows:

Up coming projects:

• The Singha Complex, a mixed-use development located on 11 rai at the corner of Asok and Phetchaburi roads at the site of the former Japanese embassy. The embassy sold the plot four years ago to Singha Property for 520,000 baht a square wah, then recently transferred it to Singha Estate.Singha plans to develop hotel, retail, office and residential projects there worth a combined 6 billion baht over a construction area of 144,250 square metres. Construction will start in next year’s second quarter for completion in late 2018.
• On Asok Road, it has another plot sized two rai opposite GMM Grammy Place where it plans to develop a 39-storey condo project with 329 units worth 2.85 billion baht by the end of next year.
• In 1Q15, it will launch a low-rise condo project worth 1.75 billion baht on 13.5 rai on Ram Intra Road that will comprise five seven-storey buildings and a total of 686 units.
• The company is also planning a high-end single house project worth 2.24 billion baht next year on a 30.5-rai site on Pradit Manutham Road in the Nuan Chan area with 16 units sized one rai each.
• Singha also plans to add 31 rooms to the Santiburi Beach Resort & Spa, its five-star hotel on 57 rai on Koh Samui. Its first-half occupancy rate was 61%, down from 79% last year.

So what’s next?

• Well it’s already trading at a market cap of ~ THB 50 bn, so how much more upside is possible given that we already know what projects are lined up
• Free float is less than 7% at the moment, and the SET has a minimum requirement of 15% which has to be implemented within 12 months, so I wouldn’t be surprised to see a placement to institutional investors within this time period

Source(s): SET, Bangkok Post, Google Finance