Kaset Thai International Sugar Corporation (KTIS) targets new capital worth Bt9.57 billion from its initial public offering (IPO) of shares at the price of Bt10 next Monday through Wednesday.
Some of the funds raised will be used to expand its organic-fertiliser production (Bt50 million) and two biomass electricity plants worth Bt960 million each.
The rest will be used for the company’s cash flow, managing director and chief executive officer Parphan Siriviriyakul said.
He said the company was issuing 957,827,000 new shares or 24.6 per cent of its registered capital of Bt3.99 billion, at par value of Bt1 per share, at the IPO price of Bt10 per share.
This will be open to booking from April 21-23, and the lead underwriter is KT Zemico Securities Co.
After the IPO and listing on the Stock Exchange of Thailand, the company’s debt-to-equity ratio will be 1.5:1.
At present, KTIS group has three plants to produce white sugar, with total capacity to process 88,000 tonnes of sugar cane a day.
It is largest firm in the Thai sugar industry.
Meanwhile, the group also has plants to produce by-products from sugarcane such as ethanol, tissue from bagasse (the fibrous matter left after cane is crushed), electricity from biomass, and organic fertiliser.
Up to 80 per cent of its revenue comes from sugar, and the rest from these related by-products.
The company reported revenue of Bt18.05 billion last year, 80 per cent from sugar business, 8.6 per cent from ethanol, 8.3 per cent from bagasse tissue, 1.5 per cent from biomass electricity, as the remaining 2.9 per cent from organic fertiliser and services.