SCG Packaging seeks to raise up to B39.5bn in IPO

22-Sep-2020 Intellasia | BangkokPost | 6:02 AM Print This Post

SCG Packaging Plc (SCGP), Thailand’s biggest packaging company, plans to raise as much as 39.5 billion baht in the nation’s second-largest initial public offering this year.

The unit of Siam Cement Group Plc, one of the country’s largest industrial conglomerates, set a price range of 33.50 baht to 35 baht for its 1.13 billion share offering, according to its filing with the Securities and Exchange Commission on Monday.

The company will sell an additional 169 million new shares should a so-called greenshoe option be exercised in full, the filing said.

SCGP’s initial share sale is set to be Thailand’s second largest this year after Central Retail Corp in February.

Asian IPOs sprung back to life following a slowdown amid the coronavirus outbreak, with a flurry of new listings in Hong Kong and China and reviving activity in India amid abundant liquidity following a lull triggered by the novel coronavirus pandemic.

SCGP’s IPO was approved in May but the company later had said it was unsure about the timing amid the spread of the virus.

“The packaging business has become a crown jewel of Siam Cement with the explosive growth of e-commerce and food-delivery demand amid the pandemic,” said Tawatchai Asawapornchai, deputy managing director at ASL Securities. “The company may view the window of opportunity as small with no ending of the coronavirus outbreak any time soon.”

SCGP has already allocated 677 million new shares, or 60 percent of the offering, to 18 local and foreign funds as cornerstone investors, the filing showed.

Kasikorn Asset Management and BBL Asset Management are the biggest buyers among 14 domestic institutions, while Avanda Investment Management Pte and NTAsian Discovery Master Fund are among the largest international investors.

The company plans to use proceeds from the offering to fund business expansion and new acquisitions as well as debt repayment, according to its filing. Its net income in the first half of this year jumped 40 percent to 3.64 billion baht, while total sales climbed 11 percent to 45.9 billion baht.

Shares will be offered to domestic and foreign investors from September 28 to October 14, according to the filing. The company will announce the final pricing on October 8.

SCB Securities and Bualuang Securities are the lead arrangers for the domestic offering, while Morgan Stanley and UBS Group is managing the international sales.

https://www.bangkokpost.com/business/1989151/scg-packaging-seeks-to-raise-up-to-b39-5bn-in-ipo

 


Category: Thailand

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