MAI Start With SAAM First Day Trade in Red Zone Against Business Opportunity.
7-1-2019–Today morning atSET building, MAI (Market for Alternative Investment)open its first IPO trade of this year (2019) by SAAM Energy Development (SAAM) the renewable energy developer, develop renewable energy for sale which its IPO price was lower than its booking price (1.80 baht/share).
Mr.PodDuang Kongkamee CEO of SAAM said the lower than booking of SAAM’s IPO price this morning might because the investor had negative perception towards IPO stock and the panic investor sold out some stock.
“By the way it doesn’t reflex future of SAAM business that target to have 100 MW or six renewable power plant projects to be sold by the year 2020 and now there are 40 MW of Bio-Mass power plants in Japan (~20 MW each) that will be ready to be sold in these couple years (2019-2020) and the land are now available for the others 60 MW renewable power plants in Japan that could be Bio-Mass, Solar or Geo Thermal. He referred to the analysis of three brokers FINANSIA, TRINITY and NOMURA analyzed that SAAM will be able to take 55-60 million Baht profit if the Bio-Mass power plants in Japan sold this year jumping from 1.66 million baht net profit in the 3th quarter of 2018 which was less than 5.65 million baht net profit in the same period of 2017, due to the preparation cost of the project in Japan and FA cost to have SAAM listed on MAI, while the net profit of nine months in 2018 was 16.69 million baht.” said SAAM’s CEO.
He said SAAM is also plan to join investing in the wood pellet plants to supply for the Bio-Mass power plants in Japan which is now under negotiation with two alliances; one is Thai and the other is foreign investor. SAAM set to invest not over 40% in the wood pellet power plants by about 50 million baht of investment.
SAAM CEO said “Now the company has made agreement with two companies, one is Thai and the other is Japanese company those tend to buy SAAM Oita 01 Biomass Power and SAAM Oita 02 Biomass Power in Japan which has 19.9MW installed capacity each. He said SAAM expected to have one of the power plant project sold within this year and expected the other project to be sold by next year (2020). By the way SAAM is also talking with the other three Japanese investors which are the power plant developer companies interested in the two Bio-Mass power plants of SAAM and they might be the investor to take the place if any of the first two decided not to buy the project they used to agree.”
“Each of the power plant need three years to have its construction completed, while the wood pellet plant need one year for construction then it still time for SAAM to search for the strategic partners those can sustainably supply rubber wood to produce the wood pellet that can secure SAMM Bio-Mass long term power production.” said Mr.PodDuang.
