KTIS trades on SET under F&B sector

Economy April 29, 2014 00:00

By THE NATION

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KASET Thai International Sugar Corporation Public Company Limted (KTIS), , a leading sugar producer with the world's largest plant, says it can go ahead and invest Bt1.4 billion in two bagasse-fired power-plant projects after receiving a good response to



The IPO was embraced by both institutions and retail investors, including sugar-cane growers that wanted to become a part owner of a plant, it said. KITS began trading yesterday. It is listed in the food and beverage sector of the SET.

Parphan Siriviriyakul, managing director and chief executive officer, said the 585.43 million IPO shares accounted for 24.6 per cent of its total shares. At the IPO price of Bt10, KTIS raised more than Bt5.85 billion.

The two biomass power plants will add 100 megawatts to its generating capacity.

About Bt980 million will be invested in a project to produce syrup and super-refined sugar, while Bt20 million will be used for bio-fertiliser production. The rest will supplement working capital. About Bt2.08 billion has been set aside for an issue of common shares to strategic shareholders from Singapore.

KTIS owns Kaset Thai Sugar Factory, Thai Identity Sugar Factory and Ruamphol Sugar Factory. Kaset Thai Sugar Factory is the world’s largest with a capacity of 55,000 tonnes of sugar cane per day. Combined with Thai Identity’s 18,000 tonnes and Ruamphol’s 15,000 tonnes, KTIS will have a total capacity of 88,000 tonnes of sugar cane per day.

Besides the biomass power business, KTIS also operates fully integrated manufacturers and distributors of products such as bleached pulp from bagasse, ethanol and bio-fertilisers.

Its main customers are mostly leading industrial companies such as Thainamthip, Carabao Tawandang, Lactasoy, Nestle, Friesland Campina and Osodsapa. It exports to the world’s leading trading companies.

Last year revenue from sales and services reached Bt18.05 billion, excluding Bt787 million from other income. About 80 per cent of revenue came from the sugar-cane and sugar business and 20 per cent from downstream industries, including the ethanol business (8.6 per cent), bleached pulp from bagasse (8.3 per cent), biomass power business (1.5 per cent) and other businesses (2.9 per cent).

Kaset Thai International Sugar Corporation was founded by Jaroon and Hathai Siriviriyakul.

The company decided to go public to provide a chance for Thai investors to own a thriving sugar and related business. The company increased its registered capital from Bt3.27 billion to Bt3.88 billion on January 29 of last year to support its listing on the stock exchange. The company’s paid-up capital is Bt3.27 billion.

Last year, Sumitomo Corp, the world’s leading trading company, and Nissin Sugar, Japan’s second-largest sugar refinery, realised the potential of KTIS and decided to become shareholders of the Thai company after it began trading on the stock market.

Sumitomo will bring its world-class expertise and experience to expand KTIS’s market and customer base, while Nissin Sugar will help boost productivity and add value to KTIS products, the firm hopes.