Market for Alternative Investment (mai) will list Shrinkflex (Thailand) Plc, a leading one-stop shrink sleeve label printing manufacturer and distributor in Thailand, on October 29, under the ticker symbol "SFT". The company has a market capitalization at its initial public offering (IPO) of THB 1.67 billion (approx. USD 53.2 million).
mai President Prapan Charoenprawat said that SFT would list and start trading on mai in Industrial industry group.
SFT manufactures and distributes shrink sleeve label printing products for packaging of consumer goods across industries such as food & beverage, cosmetics and beauty products and household appliances. The one-stop service covers providing consultation on packaging, material selection, label design as well as technical qualifications of sleeve label that can enhance quality of packaging products. In addition, the company also provides services in creating packaging design and producing printing molds for production process, as well as importing stretch film to wrap products on pallets.
SFT has a registered paid-up capital of THB 220 million, consisting of 320 million existing common shares and 120 million newly issued shares, with a par value of THB 0.50 each. It offered newly issued shares via IPO to public, of which 78 million shares to persons under the underwriters? discretion and the company?s patrons, 30 million shares to institutional investors, and up to 12 million shares to the company?s directors, executives and employees at THB 3.80 each, for a total of THB 456 million, during October 19 - 22, 2020. The IPO price, determined by the book building process among institutional investors, was equivalent to price-to-earnings ratio (P/E ratio) of 27.14 times, calculated by using the company?s net profit in the past 4 quarters (July 1, 2019 - June 30, 2020) of 59.71 million, divided by fully diluted shares, representing earnings per share of THB 0.14. RHB Securities (Thailand) pcl is its financial advisor and lead underwriter.
SFT Chief Executive Officer Sung Cheong Tsoi said that with the expertise in shrink sleeve label business for over 12 years, the company?s team is determined to develop production process and ensure product quality, and has therefore achieved continuous growth. The fund raised from this IPO will be used to invest in the new production plant to expand production capacity to serve existing shrink sleeve label market and competitively launch new products in the new market. In addition, the fund will also be used for loan repayment to financial institutions and as working capital.
After the IPO, SFT?s major shareholders are Mr.Sung Cheong Tsoi group (47.27 percent) and Piyatrueng group (25.45 percent). The company?s dividend policy is to pay no less than 30
percent of net profit after corporate income tax and allocation of all types of reserves in compliance with the laws and the company?s regulations.
For more information, please see the company?s prospectus at the Securities and Exchange Commission?s website at www.sec.or.th; and for general information, please visit www.shrinkflexthailand.com and www.set.or.th.