SCG Chemicals Pcl, a unit of Siam Cement Pcl, is seeking to raise as much as US$3 billion in what could be Thailand's largest ever initial public offering (IPO), according to people familiar with the matter.
The chemical company plans to offer as many as 3.85 billion new shares to raise funds for business expansion and debt payment, according to a regulatory filing Wednesday. The filing did not give any details on price range or fundraising size.
SCG Chemicals targets to raise at least $2 billion in the Bangkok IPO as soon as this year, the people said, asking not to be identified discussing confidential information. Considerations are ongoing and details could still change, the people added.
Roongrote Rangsiyopash, Siam Cement’s chief executive officer, declined to comment on the timing, size and other details of SCG Chemicals’s IPO at an online press briefing on Thursday, citing the share sale’s pending approval by regulators.
Siam Cement shares rose as much as 3.6% in Bangkok on Friday, their biggest intraday move in more than two months, according to data compiled by Bloomberg.
At $3 billion, SCG Chemicals’s IPO could surpass Central Retail Corp Pcl’s $2.3 billion offering in 2020 as Thailand’s biggest on record, according to the data. It would be Southeast Asia’s largest first-time share sale this year, taking the crown from GoTo Group’s $959 million offering.
Siam Cement, in which His Majesty King Maha Vajiralongkorn is the largest shareholder, was established in 1913 by the monarchy to support the country’s economic and industrial development, according to its website.
SCG Chemicals plans to use the IPO proceeds to strengthen its capacity and expand the business in Southeast Asia in order to tap growing demand for its products, according to Siam Cement’s presentation on Thursday. The company has a strong presence in Indonesia, Vietnam and Thailand, it said.
Bualuang Securities Pcl, Kasikorn Securities Pcl and SCB Securities Co are arranging the share offering to Thai investors, according to the filing.