At the end of its first day of trade on the MAI, Bluebik Group posted a big gain.
Shares of Bluebik Group, a local tech consulting firm, soared 66.7% above the offering price to close at 30 baht on Thursdy in their first day of trade on the Market for Alternative Investment.
The initial public offering (IPO) for Bluebik was priced at 18 baht a share.
The first trade for Bluebik, with the ticker symbol BBIK, was at 36.75 baht, up 18.75 baht or 104% from the IPO price.
The company has paid-up capital of 50 million baht with a par value of 0.50 baht per share, consisting of 75 million existing ordinary shares and 25 million newly issued IPO shares.
Pochara Arayakarnkul, chief executive of Bluebik, said the company expected to raise 450 million baht from the IPO to spend on business expansion plans and to build a talent pool.
Mr Pochara said the company plans to spend 135 million baht, or 30% of the capital raised, to invest in other businesses related to Bluebik’s core businesses, possibly through mergers, acquisitions and joint ventures, to create synergy and enhance the company’s capacity to deliver a more extensive range of services for customers.
The company will first focus on forming partnerships and joint ventures with businesses in retail, finance, insurance and communications, especially those based in Southeast Asia, he said.
These sectors reflect the company’s core industry expertise, said Mr Pochara.
The company previously expanded its business through a joint venture with PTT Oil and Retail Business Plc (OR) under Orbit Digital Co with registered capital of 50 million baht to create new expansion opportunities for OR to become a digital leader in the retail industry.
The company expects to start recognising revenues from Orbit Digital later this year, with full-year income from 2022, he said.
To support business expansion, Mr Pochara said the firm also plans to spend 67.5 million baht, or 15% of the capital raised, to acquire top talent and establish a learning academy to enhance technology skills for existing personnel.
Bluebik also plans to spend 67.5 million baht on the development of technological and digital products such as software to attract more small and medium-sized companies as consulting services are costly and usually targeted towards big companies with greater financial prowess, he said.
Some 45 million baht, or 10% of the capital raised, is for office expansion, while 22.5 million is allocated to upgrade the company’s software to support internal operations such as recruitment, said Mr Pochara. The remainder is reserved for working capital.
He expects the firm’s growth will be sustained by increasing demand for tech consultancy and digital transformation. The firm’s core strength and unique sales proposition lies in its extensive expertise in both strategy and tech consulting, allowing it to provide end-to-end services that concern all stages of digital transformation from planning to implementation at competitive prices compared to foreign rivals, said Mr Pochara.Internet Explorer Channel Network