NSL Foods, a manufacturer of bakery goods and distributor of packaged meals, announced its initial public offering (IPO) yesterday at a price of 12 baht per share, with a subscription period set for May 11-13.
Its debut on the Stock Exchange of Thailand is scheduled for May 19.
NSL plans to sell 75 million shares through the IPO, with 71% or 53 million shares allocated to retail investors, 9% or 7 million shares to institutional investors, and the remainder to employees.
Asia Plus Securities serves as an underwriter for the IPO along with four other co-underwriters: Finansia Syrus Securities, Globlex Securities, Krungthai Seamico Securities, and RHB Securities (Thailand).
Yodrudee Santatikul, senior executive vice-president of Asia Plus Securities, said 12 baht per share is a reasonable price and reflects the growth of the food and beverage industry.
The IPO is likely to attract a number of investors as the company has a solid business direction that matches global trends and the company's growth looks promising, she said.
The company shares are slated to list in foods and beverages under the NSL symbol.
Arkradej Liamcharoen, vice-president for finance and accounting at NSL, said IPO proceeds will be used to build a 350-million-baht factory at Amata City Chonburi Industrial Estate.
The construction is scheduled to start in 2023 and be fully completed by 2024, he said.
The factory adds production capacity to generate maximum revenue of 1.2 billion baht per year, focusing on three product lines: frozen meals, ready-to-eat meals and retort pouches.
Somchai Asavapiyanond, the company's president, said the company also plans to export cricket protein biscuits under a co-brand named "Natural Bite Sens" to the global market, starting with France in the second quarter next year.
NSL Foods is working with its partner to tap into the insect snack market in Europe and Asia, where consumption looks promising.
The company also plans to invest in other cricket protein products.
Mr Somchai said NSL Foods has transformed from a bakery manufacturer to a food manufacturer by extending its product portfolio to the snacks and food service segments.
The company is also branching into ready-to-eat foods in the chilled, frozen or fresh food categories.
"The overseas market is our priority. In Thailand, the ready-to-eat business is estimated at 70-80 billion baht, so we can't imagine how big the overseas market can be," said Mr Somchai.
"We are building ready-to-eat food as our new pillar."
He said all these moves are part of an effort to make its business more sustainable.
Mr Somchai said the company plans to start exporting popular Thai fruit desserts such as durian and mango sticky rice to the Chinese market starting in November or December this year via local importers.
The goal for NSL Foods for Thai desserts is sales of at least 100-200 million baht a year, he said.