SCG Packaging (SCGP), the packaging arm of SCG, Thailand's largest industrial conglomerate, plans to raise around 43-45 billion baht with its initial public offering (IPO) in October.
SCGP set a price range of 33.5 to 35 baht for its 1.12 billion shares, which account for 26.5% of total shares, the country's biggest IPO.
Chief executive Wichan Jitpukdee said proceeds from the share sale will fund its business expansion in Asean, repay debts, support merger and acquisition plans and serve as working capital.
"SCGP expects to spend money on organic growth as well as investment and maintenance projects," he said, referring to a plan worth around 27 billion baht expected to be extended until 2023.
The company also set aside 10-13 billion baht to pay back financial institutions in 2021.
SCGP wants to focus on markets in Thailand, Indonesia, the Philippines and Vietnam because of their market potential for packaging along with high spending and large populations.
The company is in the process of acquiring a majority of shares in Bien Hoa Packaging Joint Stock Company (SOVI).
SOVI is Vietnam's leading downstream producer of fibre-based packaging. It has a combined production capacity of 90,000 tonnes of corrugated containers per year and 10,000 tonnes of offset laminated packaging per year.
The Vietnamese firm runs three manufacturing facilities located near Ho Chi Minh City.
SCGP has planned projects worth 8.2 billion baht to boost its packaging capacity in four countries: those in Thailand have an investment value of 600 million, those in the Philippines are worth 5.3 billion, Indonesia projects will see 1.73 billion and Vietnam 543 million.
"These projects are expected to be completed between 2020 and 2021," said Mr Wichan.
SCGP operates 40 factories in Thailand, the Philippines, Vietnam, Indonesia and Malaysia, covering a range of industries including food, beverages, electronics, automotive and e-commerce.
SCGP has secured a 36% market share, based on sales volume of packaging products, in the Asean market.
The company saw revenue grow by 6.1% on average from 2016-19. Last year it reported revenue of 89 billion baht and profit of 5.8 billion.
From January to June this year, SCGP earned 45.9 billion baht in revenue, an increase of 10.5% year-on-year, and profit of 4.1 billion, a gain of 45.6%.