THAI NIPPON Rubber Industry, one of the world’s largest condom producers, has submitted an application to list on the Stock Exchange of Thailand.
Manpong Senanarong, managing director for investment-banking business at Kasikorn Securities, the financial adviser of Thai Nippon, said the condom maker submitted its proposal for an initial public offering to the Securities and Exchange Commission on Friday.
According to the plan, Thai Nippon will offer up to 75 million shares to the public, half of which are newly issued stocks and the other half existing shares held by its current shareholders.
The IPO amount will account for 25 per cent of all outstanding stocks after the listing.
At present, Thai Nippon has registered capital of Bt300 million, of which Bt262.5 million is paid up.
The company produces and distributes condoms made from natural rubber and other related products.
It divides its businesses into three parts. Under the branded business, it sells condoms and gel lubricants under the One Touch trademark to domestic and international markets. The original equipment manufacturer (OEM) business provides subcontract-manufacturing condoms and gel lubricants for private companies and organisations in more than 100 countries.
Its auction business contests tenders organised by public and private organisations in Thailand and abroad.
Thai Nippon managing director Amorn Dararatataroj said the company’s two factories had a combined production capacity of 1,959 million pieces per year.
The Laem Chabang plant has a 426-million-piece annual capacity and the Chon Buri factory accounts for the rest.
One Touch products
The markets for its One Touch products include Cambodia, Laos, Myanmar, Vietnam and Egypt.
For the OEM business, the firm is a subcontractor of United Medical Devices, which sells its products under the Playboy brand worldwide, as well as being the sole distributor of UMD products in the Thai market.
Thanks to its large production capacity and quality manufacturing, Thai Nippon is competitive in the auction business, which helps it to maximise its production and lower its unit cost, it says.
“We are the producer of condoms made from natural rubber that has the largest installed capacity in Thailand, and one of the largest in the world,” Amorn said.
The company says it wants to expand the markets for its branded products as well as the customer base for its OEM business, to ensure its continued solid growth.