TOA ready for SET listing in Q4
TOA Paint Thailand Plc will be the first paint company to list on the Stock Exchange of Thailand, scheduled for the fourth quarter of this year.
The country's largest maker of decorative paints and coatings, will float 507.6 million shares in its IPO, or 25.02% of its equity, with the proceeds going to fund local and overseas expansion.
The Securities and Exchange Commission (SEC) yesterday approved the IPO application and filing.
The company will offer up to 254 million primary shares and 253.6 million secondary shares held by Wybrant Holding Ltd, an existing shareholder.
TOA Paint has registered capital of 2.029 billion baht, at one baht par, with paid-up capital of 1.775 million baht.
Bualuang Securities and Kasikorn Securities, the firm's financial advisers, said the processes of share allocation and share pricing have yet to be concluded.
Chief executive Jatuphat Tangkaravakoon said TOA has set an investment budget of 1.2 billion baht. Of this amount, 990 million baht (82.5%) will be used to build factories in three countries.
The planned factory in Indonesia will take up 590 million baht (49% of the budget), the one in Myanmar 350 million baht, and the one in Cambodia 70 million baht. The remaining 190 billion baht will go to machinery improvement and other investments.
The three new plants will begin commercial operations in 2018.
The Cambodian site will kick off in the second quarter, the Myanmar one in the third quarter, and the Indonesian in the last quarter of next year.
"We expected total production capacity in AEC to increase by approximately 15.1 million gallons per year, or 17.1% of the current capacity -- excluding the plant operated by TOA Skim Coat Cambodia," Mr Jatuphat said.
"The enhanced production capacity will expand our market share and competitive edge in the AEC paint and coating sector."
Foreign countries will represent around 30% of production capacity once the new plants are completed.
"The increase in productive capacity will allow us to capture better market positions in these countries," Mr Jatuphat said. "The contribution of foreign markets to our total revenues will gradually increase, in line with market shares."
At present, TOA has eight plants in Thailand, Vietnam, Laos, Malaysia, Myanmar and Cambodia, three in Thailand and one plant in each of the other countries.
TOA was founded more than 50 years ago. In 2016 it held a 48.7% share of the Thai market and a 13% share of the Asean market.