BBGI Plc, the biotechnology arm of Bangchak Corporation Plc (BCP), expects its earnings from new businesses, especially healthcare solutions, to make up half of total gross profit within a period of five years.
The company, which spun off from BCP in 2017 to focus on biofuel manufacturing, is preparing for its initial public offering (IPO), with share subscription scheduled for the end of March.
BBGI plans to grow in the biotechnology field by adding value to its feedstock products, including sugar and cassava.
Kittiphong Limsuwannarot, chief executive of BBGI, said his company is preparing to operate a new business, following the establishment of Win Ingredients Co, a joint venture between BCP and US-based biotechnology firm Manus Bio Inc under a 51:49 investment split, respectively.
Win Ingredients will serve as a springboard for Manus Bio, which runs a zero-calorie sweetener production facility in Augusta, Georgia, to expand its business into Asia, he said.
Win Ingredients is in the pre-marketing stage before the launch of its products. It needs two years before making a decision on developing a production facility in Thailand.
BBGI also teamed up with Bio Om Co, a startup which spun off Chulalongkorn University to produce bio-based products.
One of them is a bio-based cleaning substance that can break down the chemical structure. The company will use it to clean vegetables and fruits contaminated with pesticides.
Cooperation with Bio Om Co promises good prospects. BBGI believes this new cleaning product will receive a warm welcome from Thai consumers who are more concerned about their health when eating vegetables and fruits.
BBGI will also venture into new businesses in the contract development and manufacturing organisation, or CDMO, field. CDMO is similar to original equipment manufacturer (OEM)-related businesses which focus on making products used as components in other products.
BBGI is in talks with many biotechnology companies to develop CDMO businesses with production facilities based in Thailand.
The company is also working with its financial adviser, Krungthai Zmico Securities Co, to run a roadshow campaign under its IPO scheme.
Up to 216.6 million shares will be offered for the IPO.
BBGI plans to be listed in the energy and utilities category of the Stock Exchange of Thailand.