TBN Corporation Limited (TBN) is preparing to become a new subsidiary listed on the Market for Alternative Investment (mai) after the Securities and Exchange Commission (SEC) began counting from February 25, 2023.
Currently, TBN is in the process of preparing for its initial public offering (IPO), offering 25 million ordinary shares to the public for the first time. The company has appointed Pioneer Advisory Limited as its financial advisor.
TBN is a digital full-cycle system design and development service provider. They offer digital transformation consultancy services and develop digital solutions tailored to the needs of their clients. They utilize the MENDIX Low-code Development Platform to facilitate the rapid and efficient development of applications, websites, and digital solutions, enabling Thai businesses to fully embrace digital transformation.
MENDIX is a leading Low-Code Platform technology provider, chosen by over 4,000 organizations worldwide. It is recognized as a leader in Gartner’s Magic Quadrant for Low-Code Platform. TBN has been appointed by Siemens as an authorized reseller of MENDIX since 2008, being the first and only official reseller in Thailand.
TBN’s services can be divided into two categories:
- System development and related services 1.1 Digital Solution Services 1.2 Technical Support and Maintenance 1.3 Technical Consultancy Services
System development and related services are the main revenue-generating services for the company. The development time for a system depends on its complexity, ranging from approximately 4-5 months for less complex systems to around 1 year for highly complex systems, as per contractual agreements.
- Technology support services 2.1 MENDIX License 2.2 Cloud Services
In terms of shareholding structure, TBN’s major shareholder is Mr. Panayu Sirikornjarn, the Chairman and Co-founder, holding 23.59% of the company’s shares. Rocket Holdings (HK) Limited, owned by BTS Group, holds 18.75% of the shares. Ms. Narisara Limthanakul holds 18.04% of the shares, and Mr. Therdphong Honghirunruang holds 8.32% of the shares.
Looking at the company’s financial performance for the past three years (2019-2021), both revenue and profit have shown continuous growth.
Revenue for the past three years:
- 2019: THB 130.38 million
- 2020: THB 215.73 million
- 2021: THB 291.19 million
- 9 months of 2022: THB 243.96 million
Net profit for the past three years:
- 2019: THB 45.44 million
- 2020: THB 87.61 million
- 2021: THB 84.04 million
- 9 months of 2022: THB 26.52 million
As of the end of the third quarter of 2022, TBN has a strong financial position. Its total assets amount to THB 256.33 million, total liabilities are THB 190.16 million, and total shareholders’ equity is THB 66.18 million. The Return on Assets (ROA) stands at 16.56%, and the Return on Equity (ROE) is 42.76%.
Regarding the IPO fundraising plan, “TBN Corporation” intends to use the funds to expand its business, enhance competitiveness, and increase capabilities. This includes using the funds as working capital for digital system development to support the rising trend of Digital Transformation. It will also be utilized to increase the number of personnel, develop human resources, and improve various systems and facilities to accommodate the growing number of projects and employees, among other things.
As for the software industry and software services trends for the years 2022-2024, according to the Digital Economy Promotion Agency, it is projected that in 2022, the software industry and software services will grow by 11.70% with a total value of 183,051 million baht. In 2023, it is estimated that the software industry will grow by 12.10% with a total value of approximately 205,200 million baht.
