Osotspa has high hopes for IPO
Century-old consumer goods conglomerate Osotspa Plc wants to allocate 603.8 million initial public offering (IPO) shares in 2018, a deal that could be one of the largest IPOs on the Thai bourse, after delaying listing on the Stock Exchange of Thailand (SET) for several years.
The 603.8 million shares represent 20.1% of Osotspa's paid-up capital. Of the total, 506.8 million will be newly issued shares and the remainder will be existing shares, with 67 million offered by Orizon Ltd and 30 million to be sold by Y Investment Ltd, according to an IPO filing with the Securities and Exchange Commission.
Phatra Securities and Bualuang Securities are the company's financial advisers on the IPO, while Bank of America Merrill Lynch and JPMorgan will act as international underwriters.
The Osathanugrah family holds the lion's share of Osotspa.
Proceeds arising from the share offering will be used for business expansion in both domestic and international markets, product distribution and quality development, loan repayment, and working capital.
The company's paid-up capital as of March 2018 amounted to 2.497 billion baht, which will rise to 3 billion baht after the IPO.
Niti Osathanugrah will see his shareholding diluted to 20.2% from 25% after the IPO, Orizon's will be reduced to 17.9% from 24.2%, chairman and chief executive Petch Osathanugrah's will shrink to 4.98% from 6%, Phurat Osathanugrah's to 1% from 1.2%, Ratch Osathanugrah's to 4.98% from 6%, and Seri Osathanugrah's to 4.2% from 5.1%.
Osotspa's business spans glass, lifestyle and consumer products, drinks, medicine, and products for kids.
Southeast Asian countries including Myanmar, Cambodia and Laos are the company's focus, while it ships drinks to 25 countries around the world.
The company's flagship brands include M-150, M-100 and Lipovitan-D energy drinks, Ole candy, Babi Mild powder, 12 Plus roll-on deodorant and Tamjai Para tablets.
Osotspa reported revenue of 32 billion baht in 2015, 33 billion baht in 2016 and 26.21 billion baht last year, with net profit of 2.34 billion, 2.98 billion and 2.94 billion baht, respectively.
Core revenue from product sales accounted for 95.4% in 2015, 94.9% in 2016 and 95.5% in 2017.
The company paid dividends totalling 2.37 billion baht from its accumulative net profit to existing shareholders last month.
Anuwat Ruamsuke, managing director and head of capital markets at Phatra Securities, said he couldn't provide details related to pricing and the exact schedule for Osotspa's listing, as it remains in the filing process.
"It will be a big IPO deal on the SET, but I'm not sure whether it will be the biggest IPO of the year, as we don't know what others are lining up to list on the SET," he said.