Thai Plastic Industrial looks to list to fund expansion plan

Thai Plastic Industrial looks to list to fund expansion plan

Thai Plastic Industrial (1994) Plc (TPLAS) is ready to list on the Market for Alternative Investment (MAI) on Sept 5, and expects to raise 103.6 million baht from the initial public offering (IPO).

TPLAS, a plastic manufacturer of food packaging, will float 70 million shares, representing 25.93% of total shares on the MAI, with a share price of 1.48 baht. It set an IPO subscription period from Aug 28-30.

Managing director Teerachai Teerarujinon said the IPO is meant to finance TPLAS's expansion both at home and in neighbouring countries.

"Although, Thai society is concerned about using plastics bags and food preservation film, demand remains very high in Laos, Cambodia and Myanmar," he said.

"Next year, TPLAS plans to spend roughly 80 million baht to construct a new production line and install new machinery while another 20 million baht will be spent on constructing a new office."

All TPLAS facilities are in Bang Yai district, Nonthaburi province.

TPLAS can produce more than 10,281 tonnes of plastic bags per year or around 850 tonnes per month. TPLAS now produces polypropylene (PP) bags, high-density polyetehylene (HDPE) bags under the Markrook brand and polyvinyl chloride (PVC) film under the Vow Wrap brand.

Established in 1994, TPLAS is a family business and plans to create new high-value products to become the best food packaging supplier in Southeast Asia.

Mr Teerachai said TPLAS is not concerned about raw materials such as PP and HDPE increasing in price in the global market and this prompts local petrochemical producers to increase prices as well.

"We have room to increase retail prices," he said, adding PP is now at US$1,320 per tonne and HDPE is at $1,420 per tonne.

Plastic bag manufacturing in Thailand is expected to grow by 5-10% in 2018 from a value of around 60 billion baht in 2017 with TPLAS expressing confidence in people's purchasing power and the increasing prices of agricultural products which will beef up demand nationwide.

"TPLAS's products form part of consumer goods, so when overall purchasing sentiment is doing very well, the plastic packaging sector also grows," said Mr Teerachai.

In 2017, TPLAS posted total revenue of 531 million baht, up 9.3% with a net profit of 22 million baht. It reported revenue in the first half this year at 273 million baht, up 6.6% with net profit of 12.5 million baht.

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