Overwhelming success for Nok Air IPO due to investors’ confidence in Nok Airlines’ strong fundamenta

Nok Airlines Public Company Limited (NOK) revealed the Initial Public Offering (IPO) of its ordinary shares offered to investors during June 12-14, 2013 at THB 26 per share received overwhelming response from investors. Moreover, the relatively low 11.5 times price-earnings ratio (P/E) is attractive when compared to industry benchmark. Nok Air has successfully raised THB 3.25 billion from the newly issued ordinary shares and THB 1.625 billion from shares offered by an existing shareholder. The total proceeds raised equal THB 4.875 billion. NOK shares will begin trading in the Stock Exchange of Thailand on June 20, 2013.

M.L. Thongmakut Thongyai, Chief Executive Officer of SCB Securities, said "Despite market volatility during the past week, NOK IPO was extremely successful as investors showed strong confidence in Nok Airlines due to its sound financial records, strong fundamentals and clear growth prospects. Moreover, NOK's P/E ratio of 11.5 times is considered to be significantly lower than industry average P/E ratio of 14 times as calculated by analysts and lower than competitor airline's P/E ratio of 18 times. I believe these factors contributed to the interest we got from investors for NOK IPO shares."

Mr. Patee Sarasin, Chief Executive Officer of Nok Airlines Plc., said "I would like to thank all investors, both of institutions and retails, for their support of NOK IPO. Nok Air is a truly Thai low-cost airline owned by Thais, has the most extensive domestic route network, the highest flight frequency and a very strong recognizable brand. We have strong growth prospect and are in an industry with high growth potential. I hope that together, Nok Air and Thai investors will take off toward future success."

The subscription price of NOK IPO is THB 26 per share, with a par value of THB 1 per share. The company's market capitalization totals THB 16.25 billion. NOK shares will commence trading in Transportation & Logistics Sector on June 20, 2013. The ticker symbol will be NOK.