Sportswear manufacturer Warrix Sport Plc aims to use more than 1 billion baht from its initial public offering (IPO) to expand the company's sport, health and lifestyle brand in Thailand and overseas.
Building off its trade name Warrix, the company yesterday offered 180 million newly issued shares to investors on the Market for Alternative Investment for 6.30 baht each.
The share price rose 27.8% to 8.05 baht in trade during early hours.
The firm plans to use 1.13 billion baht for the business expansion by adding more sports categories such as golf and basketball, and by diversifying into other industries as part of its strategy to strengthen the brand in the region and move into the global market.
"I am confident Warrix can achieve unlimited growth going forward with an adequate level of funding as the sport and health industry matches the global trend of robust demand," said chief executive Wisan Wanasaksrisakul.
Apart from the apparel business, the firm plans to expand its portfolios in the sport as well as the health and lifestyle markets, in line with increasing demand globally.
Food and music festivals will be Warrix's new target market, as well as the fashion and lifestyle industries, where the company aims to expand its product line-up, Mr Wisan said.
Revenue for Warrix dropped from 700 million baht in 2019 to 662 million and 658 million in 2020 and 2021, respectively.
However, the sports apparel distributor reported growth in net profits, with 12.7 million baht posted in 2020 and 14.2 million last year.
Revenue has rebounded this year. In the first nine months, the company's income totalled 697 million baht, up 63.8% year-on-year, with a net profit of 65.4 million baht.
During the spread of Covid-19, Warrix focused on selling its products through online channels, said the company's sales director Pongwat Tiyapornchai.
"With more sports and health-related events, particularly football matches, being held in public places both domestically and internationally, the demand for such products will certainly drive the sales growth of Warrix," he said.
Vicha Tomana, managing director for investment banking at Phillip Securities (Thailand), which is Warrix's financial advisor, commented: "Warrix is on course to grow thanks to its variety of sales channels and clear business expansion strategy. The company's shares have the potential to become a growth stock that grants investors a good return."
