Exclusive: Thai Siam Cement's packaging unit set for $1 billion IPO – sources

This post was originally published on this site

© Reuters. The logo of the Siam Cement Public Company Limited is pictured at its office building in central Bangkok© Reuters. The logo of the Siam Cement Public Company Limited is pictured at its office building in central Bangkok

By Anshuman Daga

SINGAPORE (Reuters) – Thailand’s Siam Cement Pcl’s (SCG) (BK:) packaging subsidiary is planning a local listing, in a float that is set to raise about $1 billion, two sources with knowledge of the matter said.

The IPO of SCG Packaging Pcl (SCG Packaging), which could be announced as early as this week, is aimed at independently beefing up the company’s funding needs as it charts out a regional expansion strategy, they said.

“Siam Cement has been considering options for this business and an IPO is the next step,” said one of the sources.

The sources declined to be identified as news of SCG Packaging’s IPO has not been publicly reported.

There was no response to emails sent to SCG Packaging.

SCG Packaging is the holding company for the packaging, packaging paper, forestry, pulp and paper business of the country’s largest industrial conglomerate.

The unit, 99% owned by SCG Packaging, is expected to file for an IPO in December and launch the issue in the first half of 2020, one of the sources said.

SCG Packaging’s planned IPO comes at a time of renewed investor interest in Thai IPOs, supported by growth expectations in the country and the potential for expansion in Southeast Asia.

SCG Packaging has enjoyed strong business growth in the last few years. In 2018, its revenue from sales rose 7% to 87 billion baht ($2.88 billion) and profit jumped 37% to 6 billon baht. These were the highest in nine years, according to SCG Packaging’s annual report.

In May, SCG acquired a 55% stake in Indonesian paper packaging company, PT Fajar Surya Wisesa Tbk from existing shareholders for $665 million.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.