During the last couple of years, its sales as well as its profits have touched their all time high.
According to two sources with knowledge of the matter at hand, Thailand’s Siam Cement Pcl’s packaging subsidiary is planning on floating an initial public offering so as to raise around $1 billion.
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.
Sources preferred the cover of anonymity since the news of SCG Packaging’s IPO has not been publicly reported.
SCG Packaging did not respond to requests for comments.
SCG Packaging is the holding company for the packaging, packaging paper, forestry, pulp and paper business of the country’s largest industrial conglomerate.
SCG Packaging is expected to file for an IPO later in December with a launch scheduled for the first half of 2020, said a source.
The planned IPO comes at a time when there is increased investor appetite for Thai IPOs among investor and is supported by Thailand’s growth expectations as well as its potential for increasing its marketshare in Southeast Asia.
During the last few years, SCG Packaging has enjoyed strong business growth, and saw its sales rise by 7% to $2.88 billion (87 billion baht) and its profit jump by 37% to 6 billion baht.
According to the company’s annual report, these were the highest in nine years.
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