Shares of Ichitan Group Plc surged 30.8% at one point on its opening trade yesterday, with investors clamouring for a piece of the thriving green tea market.
Tan: Eyeing production expansion
Ichitan's sizzling debut also indicates investors' appetite for the initial public offering (IPO) shares remains strong.
The stock opened at 16.50 baht, well above the IPO price of 13 baht, and peaked at 17 baht before closing at 16.20 baht for a 24.6% gain.
It enjoyed the highest trading value at 6.68 billion baht.
The green tea manufacturer has raised 3.9 billion baht in fresh funds from allocating 300 million newly issued shares to the public.
Of the 300 million shares, 80 million have been offered to patrons, 70 million to institutional investors and 150 million to retail investors.
Proceeds from the share offering will be used to repay debt of 2.5 billion baht, expand the second phase of Ichitan's plant at a cost of 800 million and for working capital.
Tan Passakornnatee, managing director, said the company has set at least 20% revenue growth this year and plans to expand its production base into other countries in the region to capitalise on the imminent Asean Economic Community.
The company is studying the potential for locating its production base in another country, particularly Laos, Myanmar and Indonesia.
Ichitan's market share of the green tea beverage market rose to 43% at the end of the first quarter from 42% at the end of last year.
Mr Tan estimates that the company's revenue will reach 10 billion baht next year when its second phase of the plant runs in full year.
KT Zmico Securities set a fair value for Ichitan at 16.70 baht.
Meanwhile, the target price for the stock has been set at 16.40 baht by CIMB Securities.