Aug. 7--SET-listed Mill Con Steel Industries Plc aims to float its Taiwan Depository Receipts (TDRs) in Taipei by the end of the year as the first of its kind to be traded in the stock exchange there, say the company's executives.

The Thai company -- which is associated with steel tycoon Somsak Leeswadtrakul -- projects revenue will reach 10 billion baht this year, up from 9.4 billion baht a year earlier, citing reviving steel demand and prices.

The company is preparing to submit the filings to Taiwan's stock exchange and will hold a roadshow in Taiwan later this month, said Sittichai Leeswadtrakul, Mill Con's president and chief executive.

Mill Con's board of directors on July 31 approved the issue and the offering of its 100 million existing shares, or 17.45 percent of the company's paid-up capital, in the form of TDRs. Its 26 major shareholders will participate in the issue.

The company has named Taiwan's Sino Pac as the offering's financial adviser and underwriter, targeting a listing by the end of the year, he added.

Mill Con executive director Thitipong Tangpoonphonvivat said listing in Taipei appeals for market capitalisation and trading value as well as brighter prospects for steel shares than the Thai stock exchange.

Trading value in Taipei is higher than on the Singapore stock exchange with 15 million investor accounts, compared with only 500,000 in Thailand. In addition, steel shares are less attractive here than big-cap energy and banking stocks, said Mr Thitipong.

Mill Con's steel prices reached bottom in the final quarter of 2008 while demand has rebounded since the first quarter of this year, said Mr Sittichai.

Steel bars are now traded at $600 per tonne, up from $480 in the first quarter, and are on target to average $650 this year.

Mill Con's plant in Bangkok has an annual capacity of 250,000 tonnes of round and deformed bars and 300,000 tonnes of structural steel. The company also controls about 84 percent of BRP Steel, whose factory located in Rayong rolls out another 300,000 tonnes of large-format steel bars.

BRP is planning to launch its innovative thread bars in the Thai market next week. The product, which is patented in Thailand, is aimed at replacing conventional steel bars and reducing construction costs by 20 percent.

Local demand for steel bars is projected at about 3 million tonnes this year, down 20 percent from 2008.

Shares of Mill Con (MILL) closed yesterday on the Stock Exchange of Thailand at 6.20 baht, up 10 satang, in trade worth 20.22 million baht.

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