Bangkok--Nov 25--Kim Eng
Thai Ha Public Company Limited (The Company), a manufacturer and a distributor of agricultural products and processed agribusiness products such as rice, vermicelli, cereal, and vinegar under brand “KASET”, “CHARAD CHIM” and the vegetable oil under brand “CHEER”, appointed Kim Eng Securities Plc. as a financial advisor and lead underwriter. The Company will be listed in MAI. The proceed from IPO will be used to support the expansion of the Company in the future
Mr. Somroek Tangpiroontham, chief executive officer, disclosed that the Company was established on March 26, 1993 by the Tangpiroontham Family, experiencing in rice and agriculture business for more than 60 years, to operate agricultural products and processed agribusiness products such as rice, vermicelli, cereal, and vinegar under brand “KASET” and “CHARAD CHIM” and the vegetable oil under brand “CHEER”. The Company focus is to produce the high quality products in order to fulfill the consumers who seek for the premium food for both domestic and around the world. The Company has two factories consisting of the rice factory located in Sampran, Nakornprathom and the vermicelli factory located in Tak Fah, Nakornsawan. The Company started the rice business with the initial capacity of 40,000 tons per year, then jumping by 300% to 120,000 tons in 2000 as the strong demand and warm welcome in the Company’s products. In 2004, the Company continued expandeing the rice capacity to 150,000 tons per year (completed in 4Q04) with investment cost of Baht 35 million so as the target to support the domestic demand growth as well as the export. The Company also invested another Baht 25 million to expand the capacity of vermicelli by 100% to 2,400 tons per year (anticipated completion in 4Q05). Now, vermicelli is considered the healthy food as it contained high fiber and high calcium. The demand for vermicelli, consequently, is expected to be growing. These previous investment for the additional expansion would bring in additional revenue and profit right along the road without concern on major capital expenditure.
The Company has certified many quality and food safety standards such as standard of department of internal trade, standard of department foreign trade, HALAL, GMP, HACCP and ISO 9001:2000 (both SGS and Thailand Brand). In addition, the Company is the first to receive the honor certification from Office of the Consumer Protection Board.
Furthermore, the Company got Prime Minister Award in Thai owned brand and “Good Brand Award” from department of export promotion from Ministry of Commerce. Currently, the products under KASET brand has been distributed for more than 40 countries around the world from the past 5 years. The company plans to capture additional export market to reach 60 countries within next 3 years.
Due to a change in lifestyle and smaller family size, consumers has trended to prefer consuming packed rice with quality manufacturing and variety of package size. For export side, Thai Hom Mali Rice that is famous for uniqueness with its texture, aroma and flavor, is initially recognized and accepted by foreigners in Europe, the U.S.A. and Middle East. The export markets of rice have focused on quality, hygiene and well-accepted production and packing process.
Mr. Montree Sornpaisarn, chief executive officer of Kim Eng Securities (Thailand) Plc., as the financial advisor, unveils that Thai Ha Plc. performed very well as themanufacturer and the distributor of agricultural products and processed agribusiness products such as rice, vermicelli, cereal, and vinegar. The management team is in the packed rice business for more than 10 years and has maintained a good relationship with intermediate agents, industrial consumers, restaurants and modern trade such as Tesco Lotus, BIGC, Carrefour, Makro and Home Fresh Mart. Now, the Company is a leader in retail pack rice in domestic modern trade with the highest market shares for 2 consecutive years in Modern Trade (Source: AC Neilsen Retail Audit). thru Hom Mali Rice under “KASET” brand.
The Company has policy, which focuses consecutive high growth and stability and brand image of Thai Brand in world level. The Company strives to build KASET brand to be widely recognized and well accepted around the world. Subsequent to the Company decided to list in MAI market, it would add a good quality company with good corporate governance into Thai stock market. The operating performance from selling rice has consecutively increased in last 5 years in the roll. The sale of rice increased 41% per year or Baht 381 million in 2000 to Baht 1,231 million in 2004. The consolidated profit of the Company was Baht 35.18 million in 2004. Finally, by reason of strong potential of management team and staffs, we believes that Thai Ha be another potential listed company for the stock market.
The Company got approval from SEC for the IPO of 50 million shares with par value Baht 1 per sharecomposed of 45 million shares for public and 5 million shares for ESOP. The subscription period will be at the end of November 2005. The Board of Director of the Company also approved to do a greenshoe option at 5 million shares in this regard.
Corporate Communication Dept. / Kim Eng Securities [Thailand
] Plc.
Tel. 02-658-6300 ext 5180 , 7401 - 3 End.