Carabao Group Plc, the maker of Carabao Dang energy drink, made its debut on the Stock Exchange of Thailand with its share price rising by 16% from its initial public offering level.
Executives of Carabao Group and the Stock Exchange of Thailand celebrate the debut of CBG shares on the SET. The stock finished its first day of trading at 16.1% above its IPO price. PATTANAPONG HIRUNARD
Carabao shares, trading under the symbol CBG, did not upset investors. They opened at 35 baht, up by 25% from the IPO price of 28 baht, before reaching a peak of 37 and closing at 32.50, up 16.1%, in heavy trade worth 8.18 billion baht.
Overall market sentiment was positive, with the SET index rising by 0.67% to close at 1,579.2 points.
The IPO is the second-largest listing this year after mobilising 4.2 billion baht in proceeds from the sale of 250 million shares, of which 150 million shares are newly issued and 100 million are from existing shareholders. Its market capitalisation yesterday was 28 billion baht.
The first-day trading ceremony was lively, with a mini concert by popular folk singer Yuengyong "Aed" Opakul, who is one of three major shareholders in Carabao Group. He holds a 14.2% stake, Sathien Setthasit 34.3% and Nutchamai Thanombooncharoen 26.6%.
Manpong Senanarong, managing director of co-lead underwriter Kasikorn Securities, said investors jumped on CBG shares because its profit had the potential to rise 27% in a few years.
Once its glass-bottle factory is finished next year, the cost will be reduced by 25 satang a unit.
Mr Sathien, chief executive of Carabao Group, said the funds would be used to repay creditors and reserved as working capital to support its future business expansion in neighbouring countries.
"We're now a debt-free company. We took out loans to raise the production capacity for our energy drink and build a glass-bottle factory and headquarters," he said.
With 1 billion baht in paid-up capital, Carabao Group plans to expand its energy drink business to Vietnam and Myanmar in the near future. Its goal is to become the energy drink leader in Cambodia, Laos, Myanmar and Vietnam.
The company has exported Carabao Dang since 2004. Cambodia is the biggest export market, with expected revenue of 1 billion baht.
It projects export revenue of 2.1 billion baht this year, up from 1.55 billion last year.
Carabao Group is a holding company investing in Carabao Tawandang, Tawandang DCM and Asia Pacific Plus.