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The Stock Exchange of Thailand (SET) will list Thai Eastern Group Holdings pcl, a holding company with three core businesses: 1) natural rubber production and distribution, 2) crude palm oil production and distribution, and 3) renewable energy and organic waste management, on September 30, under the ticker symbol “TEGH”.
The company has a market capitalization at its initial public offering (IPO) of THB 5.18 billion (approx. USD 138.73 million).
SET Senior Executive Vice President Manpong Senanarong said that TEGH would list and start trading on SET in the Agro & Food industry group, Agribusiness sector.
Natural rubber manufacturing and distribution
TEGH’s major revenue, approximately 80 percent, derives from natural rubber
manufacturing and distribution business, which divides into two main products,
namely block rubber and concentrated latex, sold to both domestic and
international manufacturers in a variety of industries, such as the tire,
footwear and elastic yarns.
Crude palm oil and renewable energy
TEGH also owns the business that produces and sells crude palm oil to be used as raw materials in continuous industries such as cooking oil, food ingredients, butter, and non-dairy creamer. Moreover, TEGH has the business relating to renewable energy and management of organic residues from the production process to produce renewable energy, to create a green economy that can mitigate impact on the environment while generating stable income for the group of companies.
TEGH has a registered paid-up capital of THB 1.08 billion, consisting of 810
million existing common shares and 270 million newly issued shares, with a par
value of THB 1 each. It offered the newly issued shares to the general public
during September 21-23 at THB 4.80 each, for a total of THB 1.30 billion. The
IPO price was equivalent to the price-to-earnings ratio (P/E ratio) of 7.7 times.
The earnings per share (fully diluted EPS) is equal to THB 0.60, which
was calculated from the company’s net profit of THB 671.8 million in the past
four quarters (from Q3/2021 to Q2/2022), divided by fully diluted shares.
Kasikorn Securities pcl and Trinity Securities Co., Ltd. are its financial
advisors and lead underwriters.
TEGH Chief Executive Officer Chalerm Koknutaporn said that the company has been in the business for over 30 years and managed by experienced executives with long-time expertise in the business. Currently, the company is one of the leaders in the production and distribution of natural rubber, a major producer and distributor of crude palm oil and a large biogas energy manufacturer in the Eastern Economic Corridor (EEC) area.
The listing on SET will strengthen the company’s competitive edge and financial position, both in terms of lower financial costs and higher confidence among partners. Proceeds from the fundraising will be used to enhance the company’s capabilities as an investment to expand production capacity, improve operational efficiency, repay loans to financial institutions, and as working capital.
The company’s dividend policy is to pay no less than 40 percent of net profit
from the company’s separate financial statement after tax and all types of legal
reserves. However, the dividend payment is subject to change based on the
company’s operating results, financial position, liquidity, business expansion
plan, other necessities and appropriateness in the future, including other