SET-listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, is gearing up for expansion and listing subsidiary SCG Chemicals on the Stock Exchange of Thailand.
The company expects better prospects this year, projecting total revenue growth of 10% year-on-year.
SCG did not elaborate on an initial public offering date or other key details, saying only that shares to be offered to the public will not exceed 25.2% of SCG Chemicals' paid-up capital.
The fundraising is aimed to build sustainable growth for its chemical business in Asean.
SCG has allocated 80 billion baht for investments this year in Thailand and abroad.
"Around 40% of the budget will go to the Long Son Petrochemicals [LSP] complex project in Vietnam. Its construction is 90% complete, with commercial operation scheduled to start in the first half of 2023," said Roongrote Rangsiyopash, president and chief executive of SCG.
The LSP complex is projected to be the largest petrochemical facility in Asean.
SCG is conducting a feasibility study on the second-phase development of LSP to focus more on green products and manufacturing that is kinder to the environment.
The company's goal is to set up "low-carbon businesses", part of a global campaign to reduce carbon dioxide emissions.
"The petrochemical complex will serve growing demand for chemical products in Vietnam," said Mr Roongrote.
"The Vietnamese economy is growing rapidly and it is a country with high foreign direct investments," he said.
Mr Roongrote expects SCG to rack up more revenue this year due to a higher sales volume following the global economic recovery and price adjustment of some products.
The economy is slowly improving and will be better than in 2021 despite the ongoing Covid-19 outbreak, Mr Roongrote said.
Last year, SCG saw total revenue increase by 33% year-on-year to 530 billion baht.
Profit soared by 38% year-on-year to 47.2 billion baht, thanks to better performance of the chemicals business.
In the fourth quarter alone, revenue rose by 49% year-on-year to 35.14 billion baht due mainly to easing of lockdown measures and more demand, especially in the packaging segment during the New Year festival.