Glove maker STGT's SET debut a success

Glove maker STGT's SET debut a success

Ms Jarinya (centre right) and SET president Pakorn Peetathawatchai (centre left) share the SET stage on STGT's first day of trading.
Ms Jarinya (centre right) and SET president Pakorn Peetathawatchai (centre left) share the SET stage on STGT's first day of trading.

SET-listed Sri Trang Gloves Thailand (STGT) made its trading debut on Thursday on a high note, supported by rising demand for rubber gloves amid the pandemic.

The world's third-largest rubber glove maker is also the third IPO to list on the Thai bourse this year, following Yggdrazil Group and Central Retail Corporation on the Market for Alternative Investment and Stock Exchange of Thailand in early January and late February, respectively.

STGT is a subsidiary of SET-listed Sri Trang Agro-Industry (STA), a fully integrated natural rubber company with an 8% market share of global natural rubber consumption and a 7% global market share in gloves.

The company's share price saw a 78% gain during Thursday's debut and ended the day at 60.50 baht per share in trade worth 17.26 billion baht.

STGT recently sold 438.78 million IPO shares worth 34 baht per share amid high demand from institutional and retail investors, as rubber glove demand has surged during the pandemic.

The 438.78 million IPO shares account for 30.7% of total issued common shares.

"Our goal is to retain our position as a top-three rubber glove producer and distributor in the world by concentrating on boosting production of natural rubber gloves to maintain the proper production share of nitrile rubber gloves, which use synthetic rubber as a raw material," said chief executive Jarinya Jirojkul.

For this year's first quarter, STGT reported total revenue of 3.87 billion baht, up 28.9% year-on-year, and 422 million baht in net profit, up 184% year-on-year.

The company's operating results in 2020 have the potential to grow by five times from 2019 on the back of surging demand for rubber gloves during the outbreak, according to an analysis by Maybank Kim Eng Securities Thailand (MBKEST).

STGT also has strong support from parent company STA in terms of operations expansion in the rubber industry and geographical advantage, MBKEST said.

The funds raised from the IPO, worth about 15 billion baht, should be sufficient to double manufacturing capacity over the next 5-6 years, according to MBKEST.

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