Bangchak Corporation Plc (BCP), a mostly state-owned energy company, will next month file for the listing of its subsidiary BBGI Co on the stock market in a move to raise funds for its non-oil, biotechnology-based business to avoid high fluctuations of global oil prices.
Under an initial public offering (IPO) scheme, the first day of BBGI share sales is expected within the first quarter of next year, according to BCP president Chaiwat Kovavisarach.
The push for the listing is part of BCP's business diversification plan.
Funds raised from the IPO will support BBGI's development of food, cosmetics and pharmaceutical products under its plan to add value to its biofuel business.
The company produces biodiesel and ethanol at equal daily capacity of 1 million litres each.
Mr Chaiwat said BBGI expects to generate earnings before interest, tax and depreciation amortisation (Ebitda) at a rate of 50% from high value biotechnology-based business by 2026, up from 33% in 2024.
BBGI wants to venture into synthetic biology -- also referred to as synbio -- through its partnership with US start-up and biotechnology manufacturer Manus Bio Inc.
Synbio involves redesigning organisms for specific purposes by engineering them to have new abilities.
BBGI's first product, to be sold in Asean, is a sweetener made from stevia, a sugar substitute obtained from plants.
BCP injected 800 million baht under series B financing into Manus Bio through BBGI.
Manus Bio and BBGI formed a joint venture to set up Win Ingredients to develop biotechnology business in Thailand.
BCP also funds a research study, conducted by Chulalongkorn University's biochemistry department, to develop bio-enzymes to remove pesticide contaminants from fruits and vegetables.
In the cosmetics segment, BBGI imports face lotion, based on astaxanthin ingredients, for sale.
BCP allocated five-year capital spending of 88 billion baht to support its businesses until 2026.
Up to 73% of the budget will go to the power generation business run by BCPG Plc, while 8% and 7% of the amount will support its oil retail and oil refinery, respectively.
BBGI and other new businesses will equally receive 6% of capital expenditure.
In the oil refinery segment, the firm plans to increase its production capacity of unconverted oil by 10% for use as a feedstock of wax, lube oil and coating product manufacturing to cope with a plunge in jet fuel sales.