“TBN Corporation PLC. or TBN, has submitted a filing to the Securities and Exchange Commission (SEC) to prepare for the initial public offering (IPO) of 25 million shares to raise capital for the expansion of its business, enhance competitiveness, and support digital transformation trends. The financial consultant for this venture is Pioneer Advisory Co., Ltd.
Mr. Panayu Sirikrachangsri, CEO of TBN Corporation Ltd., revealed that the company has filed the necessary documents and draft prospectus with the SEC to offer ordinary shares to the public for the first time. The IPO will consist of 25 million shares, representing 25% of the total shares, with a par value of 0.50 baht per share. It is expected to be listed on the Market for Alternative Investment (MAI), with financial advisory provided by Pioneer Advisory Co., Ltd.
The raised funds will be used to support the growth of TBN, improve reliability, and enhance competitiveness. The company’s objectives for the capital raised include utilizing it as working capital to expand the business and support the increasing trend of digital transformation. The funds will also be allocated for hiring more personnel, developing systems, and improving facilities to accommodate the growing number of projects and employees.
TBN Corporation Ltd. is a publicly traded company that provides end-to-end digital design and development services. The company specializes in digital transformation consultancy and develops solutions according to customer requirements, utilizing the Low-Code Development Platform (Low Code) software, MENDIX, which enables faster application development compared to traditional methods (High Code).
Currently, TBN Corporation Ltd. is the exclusive distributor of Siemens’ MENDIX software copyrights in Thailand, being the first in the country. With over 15 years of experience and a team of experts in software development services, the company is well-positioned to provide high-quality software solutions.”
The services provided by the company can be divided into 2 categories as follows:
System Development and Related Services:
Digital Solution Services: Providing software development services, application development, or digital solution services according to customer requirements through the MENDIX Low-Code Platform. This platform allows developers to produce applications faster than traditional development (high code) and provides flexibility in developing and changing customer requirements quickly, helping to reduce the time-to-market for applications.
Technical Support and Maintenance: Providing support and maintenance services for systems after delivering them to customers, within the service period specified in the service agreement (MA Period). This includes ongoing support, care, and maintenance of the software system to ensure its continuous operation. Customers can choose the level of service specified in the Service Level Agreement (SLA), and the service period for maintenance is usually around 1-5 years, depending on the agreement.
Technology Support Services:
MENDIX License: Providing MENDIX software licenses from Siemens, the first and only licensed distributor in Thailand.
Cloud Services: Providing cloud rental services from cloud service providers, offering leased cloud space.
The system development and related services are the main revenue-generating services for the company. The duration of system development depends on the complexity of the system, typically taking around 4-5 months for less complex systems and up to 1 year for highly complex systems, as specified in the contract.
The Technical Support and Maintenance service ensures the ongoing support and maintenance of systems after delivery to customers, within the agreed service period (MA Period). The service aims to keep the program system in a usable condition at all times. Customers can choose the level of support specified in the Service Level Agreement (SLA), and the maintenance service period typically ranges from 1 to 5 years.
In the Technical Consultancy Services, the company provides consultation and software development services for customers who have already installed systems. Since the majority of the company’s customers are large-sized companies with high software system requirements, the company offers consultancy services to those large companies that have purchased MENDIX Licenses and want to develop their own software systems. The company provides training to ensure a comprehensive understanding of the MENDIX platform and conducts exams for customer developers to obtain MENDIX-certified certificates, demonstrating their proficiency in developing applications through the MENDIX Low-Code Platform.
Regarding the Technology Support Services, the company is an authorized reseller of MENDIX Licenses officially appointed by Siemens since 2008, becoming the first authorized reseller in Thailand. The company offers various license packages to customers based on the number of software applications they plan to develop and the number of users. Customers need to sign annual contracts to subscribe to the service.
Cloud Services involve providing rental of cloud space from leading cloud service providers globally, such as Amazon Web Services and MENDIX Cloud, as well as leading providers in Thailand. The company is responsible for designing a suitable infrastructure based on the estimated number of users who will use the service. This includes system configuration and providing managed and maintenance services to ensure the smooth operation of the cloud system after implementation for customers.
In addition, TBN also has a subsidiary company called BOP Limited (BOP), which provides traditional software development services (High Code) for customers who require highly customizable software systems. Offering both Low Code and High Code services is a strategic approach for the company, allowing it to be flexible and meet the diverse needs of customers in application development, including development speed, budget, and customization.
TBN envisions being a leading provider of comprehensive Digital Solutions (One Stop Service) with the highest recognition in Asia. The company aims to expand its market share in application development services and extend its software licensing sales to various industries in the Asian region.
Miss Duangphan Leelawiwat, the financial consultant of TBN from Pioneer Advisory Limited, provided an overview of the company’s performance over the past three years (2019-2021). The company’s revenue from services amounted to 130.38 million baht, 215.73 million baht, and 291.19 million baht, respectively, with growth rates of 65.47% and 34.98% in the corresponding periods. For the first nine months of 2021 and 2022, the revenue was 198.12 million baht and 243.96 million baht, respectively, with net profits of 45.44 million baht, 87.61 million baht, and 84.04 million baht, respectively, representing net profit margins of 34.85%, 40.61%, and 28.86%, respectively. In the first nine months of 2021 and 2022, the net profits were 58.70 million baht and 26.52 million baht, respectively, with net profit margins of 29.63% and 10.87%, respectively.
“The increase in revenue is attributed to the growing importance of digital transformation for corporate customers. Organizations have strategically transformed themselves by investing in technology to improve work processes, develop new services to better serve the increasing online consumer behavior, and enhance software development to analyze customer data more accurately and utilize it in various formats. These factors have resulted in a continuous increase in corporate customers, particularly in the banking, financial, and retail sectors,” said Miss Duangphan.
Regarding the software industry and software service trends from 2023 to 2025, according to the Digital Economy Promotion Agency, it is projected that the software industry and software service sector will grow by 11.70% in 2023, with a total value of 183,051 million baht. It is also anticipated that the government will announce post-COVID-19 economic stimulus policies, leading to overall economic recovery and a resurgence in the software market. Furthermore, the New Normal lifestyle, which has changed during the COVID-19 situation, will continue to drive businesses to digitalize their operations, resulting in increased software usage. In 2024, the software industry is forecasted to grow by 12.10% with a total value of approximately 205,200 million baht. The New Normal will persist, and business owners will need to find tools to reach customers and meet their demands to the maximum extent possible, with IT and software playing crucial roles.
