Bangkok--28 Apr--SET
The Stock Exchange of Thailand (SET) will list Global Green Chemicals pcl, a flagship green chemicals business of the PTT Global Chemical pcl Group (PTTGC Group), on May 2, under the ticker symbol "GGC". The company has a market capitalization at its initial public offering (IPO) of THB 11.05 billion (approx. USD 315.7 million).
SET Senior Executive Vice President Santi Kiranand said that GGC would list on SET in the Industrial industry, Petrochemicals & Chemicals sector. GGC, a green chemical company, uses palm oil (RBD palm oil and RBD palm kernel oil) as feedstock for its production of basic oleochemicals such as methyl ester, fatty alcohols and glycerin. The company has potential to add value to the products and invest in the green chemical business using natural raw materials and other related businesses.
GGC is one of the largest producers of methyl ester in Thailand and the only producer of fatty alcohols in Thailand. The company aspires to become a global green chemicals player that is prominent in each of the markets the company enters into.
GGC has a paid-up registered capital of THB 9.87 billion, consisting of 740 million existing common shares and 246.67 million newly issued shares, with a par value of THB 10.00 each. During, April 20-21 and 24, it offered 123.33 million newly issued shares to institutional investors and 123.33 million newly issued shares (excluding overallotment option) to general public via IPO at THB 11.20 each, for a total of THB 2.76 billion (excluding overallotment option). Finansa Securities Co., Ltd. and Phatra Securities pcl are the financial advisors and underwriters.
GGC Managing Director Jirawat Nooritanon said that this listing and fund raised would strengthen GGC's financial capabilities in line with the company's strategic growth plan. The fund raised would be used to finance the second methyl ester plant, the company's Biocomplex project and other projects in the future, and also as working capital.
GGC's three major shareholders after the IPO are PTT Global Chemical pcl (71.25 percent, which is the proportion after PTTGC lent over-allotment shares to the overallotment agent and such shares lent are not yet due), Muang Thai Life Assurance pcl (0.91 percent) and Bangkok Life Assurance pcl (0.84 percent). The IPO price was set by a book building process, equivalent to price-to-earnings ratio (P/E ratio) of 11.91 times calculated by the comparison of the company's earnings per share at THB 0.94 based on the company's earnings (only of shareholders of the PTTGC Group), as at the year ended December 31, 2016, divided by the company's paid-up shares, excluding the overallotment shares managed by the overallotment agent. GGC's dividend policy is to pay no less than 30 percent of net profit, from the company's financial statement, after taxes and reserves under the condition that such dividend payment is related to the investment plan, other necessities and suitability in the future.
For more information on GGC, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visitwww.ggcplc.com, as well as www.set.or.th.