The Stock Exchange of Thailand (SET) has ordered Thai Parcels Plc (TPL) to clarify three critical issues by March 31, following auditors' observations regarding the use of funds from its initial public offering (IPO) for land acquisition and new business investments.
The first critical issue concerns the company's 80-million-baht deposit for land intended for the construction of a distribution centre. However, the company later cancelled the purchase and has not yet recovered the deposit from the seller.
Preliminary findings indicate that the landowner holds a 2.03% stake in TPL, raising questions about the relationship between the seller and the company.
The SET has asked TPL to clarify the progress in reclaiming the deposit, the reasons behind cancelling the land purchase and its future plans for the distribution centre investment. This report can be found on the SET website.
The second critical issue is TPL used IPO funds to invest 45 million baht in Walton Electronics Technology (Thailand) Co Ltd, a company engaged in manufacturing and distributing electronic components for electric vehicles.
TPL holds a 23% stake in the company, so the SET has asked TPL to provide updates on the progress and plans for this new business venture, including expected returns.
The third issue relates to the impact on the IPO fund utilisation plans. The two investment projects have used a total of 125 million baht from the IPO funds, which represents 31% of the total amount raised.
This substantial allocation could affect the company's future expansion plans. The SET has asked TPL to explain the potential impact on its IPO fund utilisation plans and outline measures to prevent financial losses.
The SET has mandated TPL to disclose all relevant information through its information dissemination system by March 24 for preliminary details, and by March 31 for the board of directors' opinions. Investors are advised to closely monitor TPL's clarifications to assess potential risks and impacts on future investments.
According to the SET, TPL is engaged in providing delivery services across Thailand for both businesses and individuals, including cash-on-delivery services. Aqua Corporation Plc (AQUA) is the major shareholder, holding 34.6% of TPL's shares.
As disclosed in the IPO filing, TPL offered a total of 120 million shares, or 22.9% of its shares, at 3.30 baht per share.
Finnex Advisory Co Ltd served as the financial advisor and Kingsford Securities Plc was the underwriter. TPL's shares began trading on the Market for Alternative Investment (MAI) on June 30, 2023.
The company stated that the funds raised from the IPO will be used to invest in vehicles, charging stations and equipment to support the use of electric trucks; purchase land and construct distribution centres and/or service points; invest in information technology systems; repay debts to financial institutions; and serve as working capital for the business.
As of March 18, 2024, TPL's major shareholders include the Chinavicharana family, holding 27.05% of the shares, followed by AQUA with 19.92%. A total of 2,498 minor shareholders hold 45.42% of the free-float shares. Chaipipat Kaewtrirat serves as chief executive.