BANGKOK: Sri Trang Gloves Thailand (STGT) plans to raise 14.9 bil baht (RM2.05 bil) in an initial public offering (IPO), it said in a filing on Monday, in the country’s biggest IPO amid the coronavirus outbreak.
The rubber glove maker booked revenue of 3.79 bil baht in the three months ending in March, up 25% from 2.98 bil baht a year ago.
The increase was driven by rubber glove sales of 6.2 billion pieces, up 28.7% from the same period a year ago, and new production lines and new factories in southern Thailand.
The company said sales had increased partly due to the Covid-19 pandemic.
Gross profits nearly doubled in the first quarter this year, jumping 79.7% to 706.6 mil baht, also helped by lower oil prices.
The IPO period will be between June 23 and 25 and the company plans to sell 438.78 million shares, priced at 34 baht each.
The funds raised will be used to expand production capacity and improve efficiency between 2020 until 2026, and to pay off debt.
Sri Trang Gloves’ facilities in Thailand have a production capacity of 32.6 billion gloves per year.
After the share sale, its parent company Sri Trang Agro Industry Pcl will reduce its holdings from 73% to 50.7%.
Finansa Securities Limited is its financial advisor. – June 22, 2020, Reuters
