Eastern Water Resources Development and Management Public Co. Ltd. (East Water)

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On July 28, 1997, Eastern Water Resources Development and Management Public Company Limited (East Water) shares debuted on the stock exchange of Thailand. The public offering consisted of 51 million shares (51% of the total shares) at Bt30 per share (approximately US$1.20 per share). The international tranche of 9.4 million shares and the domestic tranche of 41.6 million shares were thirteen times and six times oversubscribed, respectively. Thai Investment and Securities (TISCO) and Dhana Siam Finance and Securities were the lead underwriters. ABN Amro managed the foreign tranche. Despite the financial crises in the Thailand Exchange markets, the share prices offered at this IPO, increased by 5.7% on the first day the company became listed on the Stock Exchange of Thailand. Proceeds raised from the IPO were used to finance a US$50 million project to improve the water supply network in the Eastern Seaboard. Prior to its IPO, East Water was operated by the state-owned Provincial Waterworks Authority (PWA). In December of 1993, the company was awarded a 30-year concession contract by the Ministry of Finance to develop and manage the principal water distribution systems transferred from earlier agencies and develop new water sources and distribution systems in the Eastern Seaboard Industrial Zone of Thailand. The company was also to render engineering consulting services related to water distribution, clean water treatment, and maintenance works. The company served mostly industrial clients. East Water operated water distribution systems in 2 areas. The first area was the Rayong Province, which the company served through the Dokkrai-Maptaput and Maptaput-Sattahip water mains. The average capacity of water distribution system in this area was approximately 75 million cubic meters/year (about 205,479 cubic meters/day). The customers were primarily industrial estates and factories. The second area was the Chonburi Province, which the company served through the Nongkhor Laem Chabang, Laem Chabang-Pattaya and Nongkhor-Bangphra water mains. The average capacity of water distribution system in this area was approximately 20 million cubic meters/year (about 54,795 cubic meters/day). Main customer groups in this area were domestic users and industrial estates. In March of 1998, East Water signed an agreement with Summit Grade Ltd to link and lay a three-kilometre raw water pipeline system between Nong Pla Lai-Nong Khor pipelines in Rayong province and Nong Khor-Laem Chabang pipeline in Chon Buri for Bt41 million. The new pipeline was to help to efficiently distribute water and boost industrial development while improving the supply of water to households in Chon Buri province through the Provincial Waterworks Authority (PWA). Following its listing, East Water had the following shareholder structure: state-owned Provincial Waterworks Authority (PWA) (44%), Industrial Estate Authority of Thailand (IEAT) (5%), and general investors (51%). By 2005, that shareholding structure was: the partially private Electricity Generating Company (EGCO) of Thailand (18.22%), PWA (40%), IEAT (4.5%), and public investors (37.25%). As of 12/01/2006 East Water had 1,738 shareholders. Major shareholders were governmental PWA (39.99%), partially private EGCO (18.62%), IEAT (4.45%), and the rest of general investors held 36.9%. As of 2004, the stake holders of EGCO were state-owned EGAT (25.41%), CLP Power (22.42%), Thai investors (30.09%), and foreign investors (22.08%). As of November 13, 2006, EGAT share in EGCO was 25.41%. East Water also held 100% in Universal Utilites Co., Ltd.. The company managed waterworks business, receiving concessions from governmental agencies such as the Provincial Waterworks Authority (PWA) and various municipalities. Universal Utilites’ business included tap water production and water distribution pipeline management. In 2001, the company began its operations under a PWA contract, establishing waterworks offices in five areas, namely Chachoengsao Water Supply Co., Ltd. Bangpakong water supply Co., Ltd. and Nakornsawan Water Supply Co., Ltd. (25-year BOT contract); Sattahip Water Supply Co., Ltd. (10-year lease contract) and Si Chang island Municipality (which produced tap water from seawater by Reverse Osmosis system). By 2005, 63% of East Water's revenue was derived from raw water sales while 22% came from tap and drinking water sales. The company was managing a 307-km water pipeline with the total pumping capacity of 423 million cubic meters (MCM) per year. Last accessed on 05/23/2007 http://www.eastwater.com/default2.asp http://www.uu.co.th/profile.asp?id=65&lang=en (UU website) http://www.pwa.co.th/english/index.html (Provincial Waterworks Authority (PWA)) http://www.egco.com/investor/ShareholdersInformation.asp None