Global Green Chemical Plc (GGC), a subsidiary of Thailand's largest petrochemical maker, PTT Global Chemical Plc, has set the price of its initial public offering (IPO) shares at 11.20 baht each, to be traded on the Stock Exchange of Thailand by May 2, according to the company's financial adviser.
Anuwat Ruamsuke, assistant managing director of Phatra Securities -- GGC's financial adviser -- said the price was the highest level that was determined through book building.
He said several institutional investors have expressed interest in buying shares, with the number of shares they want to book being five times higher than the number of shared offered to them.
GGC plans to sell 246.67 million shares at 11.20 baht each, with a greenshoe option of 37 million shares, according to the company's statement to the Stock Exchange of Thailand.
"Subscription will be on April 20-24, and trading is expected to start on May 2," the company said.
The company expects to raise 3.12 billion baht in funds from the IPO.
GGC reported revenue last year of 17.2 billion baht. Some 60% of total revenue came from the sale of methyl ester and the rest from sales of fatty alcohol. Net profit last year was 961 million baht.
The company has started a joint feasibility study with Kaset Thai International Sugar Plc, a sugar maker, to use sugar cane as the project's feedstock.
GGC plans to use ethanol as a feedstock for polylactic acid, an initial substance for producing bioplastic products.
The biochemical complex is set to be located on 1,000 rai in Nakhon Sawan province.
GGC is also planning a second biodiesel plant to boost its production capacity from 300,000 tonnes a year to 500,000. This plant is scheduled to start operations in 2018.