Bangkok--15 Aug--MT Multimedia
TOA, a leading supplier of decorative paint and coating products in Thailand and the Asean region, has won approval of its IPO application and filing. It is expected to make an IPO – to raise funds to finance local and overseas expansion and operating efficiency enhancement campaigns, and for use as working capital) – and list on SET by this yearend. To secure leadership in the Asean coating paint market, it is building three overseas plants, which will become operational in 2018.
Mr Pichet Sithi-Amnuai, president, Bualuang Securities Public Company Limited, as a Co-Financial Advisor, stated that the Office of Securities Exchange Commission (SEC) has granted the application and filing submitted by TOA Paint (Thailand) Public Company Limited ("TOA") to make an initial public offering (IPO) of ordinary shares.
TOA's current registered capital stands at THB 2.029 billion, divided into 2.029 billion shares with a par value of THB 1 each, 1.775 billion of which have been issued and paid. TOA is seeking to offer up to 507.6 million shares comprising up to 254.0 million capital-increase IPO shares and up to 253.6 million ordinary shares that are currently held by an existing shareholder (Wybrant Holding Limited), which would represent up to 25.02% of the number of TOA's post-IPO issued and paid shares.
Mr Manpong Senanarong, managing director, Kasikorn Securities Public Company Limited, as another Co-Financial Advisor, added that IPO dates are being set and TOA is likely to list on the Stock Exchange of Thailand (SET) by yearend. The funds raised by the IPO will be used to finance local and overseas expansion and operating efficiency enhancement campaigns, and as working capital.
As of 31 March 2017, TOA owned eight manufacturing plants (combined production capacity: approximately 88.0 million gallons per year, excluding the plant pending regulatory approval and to be operated by TOA Skim Coat (Cambodia) Co Ltd) in six countries, three of which were in Thailand and the remainders were in Vietnam, Laos, Malaysia, Myanmar and Cambodia. It also had three new plants in construction phase in Indonesia (expected to begin commercial operation in Q2/18), Cambodia (to be operated by TOA Paint (Cambodia) Co Ltd and expected to begin commercial operation in Q4/18) and Myanmar (to be built in Thilawa Special Economic Zone after relocation from Yangon, and expected to begin commercial operation in Q3/18).
On construction completion, the above three Asean plants' combined capacity could lead to a jump in TOA's all-AEC capacity by approximately 15.1 million gallons per year (approximately 17.1% of the current capacity, excluding the plant operated by TOA Skim Coat (Cambodia) Co Ltd), which would enhance market potential and TOA's share in the AEC paint and coating product markets. This would, in turn, its vision for leadership in the South-East Asian coating paint markets through offering of market-leading products and services.