Meat producer Betagro to raise B17.4bn in Bangkok IPO

Meat producer Betagro to raise B17.4bn in Bangkok IPO

Betagro, anintegrated agro-industrial and food company, plans to raise about 17.4 billion baht to fund its expansion. (File photo: Tawatchai Kemgumnerd)
Betagro, anintegrated agro-industrial and food company, plans to raise about 17.4 billion baht to fund its expansion. (File photo: Tawatchai Kemgumnerd)

Thai meat producer Betagro Plc plans to raise about 17.4 billion baht (US$462 million) to fund its business expansion, in what would be the country’s second-largest initial public offering this year.

The company is offering 435 million shares in the Bangkok IPO at 40 baht apiece, it said in a regulatory filing on Tuesday. An over-allotment or greenshoe option will allow Betagro to sell an additional 65 million shares if there’s strong investor demand, it said. 

Betagro is pressing ahead with its IPO even as the nation’s stock market reels from the ripples of a global equity selloff amid unprecedented monetary policy tightening by major central banks to tame inflation. The share sale will be the country’s second-biggest IPO in 2022 after Thai Life Insurance Plc’s $1 billion listing in July, according to data compiled by Bloomberg

The benchmark SET index has dropped more than 5% in the past three weeks with overseas funds pulling out a net $655 million from domestic equities in September, the first monthly withdrawal in three months, data compiled by Bloomberg show. 

Betagro is offering as much as 25% of its enlarged capital to expand its farms and animal feed production in Thailand and neighbouring countries, according to its regulatory filing. 

About 182 million shares, or 42% of the total offering, were already subscribed by local and overseas cornerstone investors including Caas Capital Master Fund, Magna Umbrella Fund and Ghisallo Master Fund, the filing showed. 

The issue is open for subscription from Oct 10 to Oct 25. While Kiatnakin Phatra Securities Plc and Bualuang Securities Plc are the lead arrangers for local investors, Bank of America Corp is the lead manager for the international offering, according to the filing.

Do you like the content of this article?
COMMENT

Myanmar junta plans poll with strict rules for political parties

Myanmar’s military government took an early step toward holding parliamentary elections, but it did so by imposing strict rules on political parties that may make fair balloting difficult.

11:14

Finance Ministry maintains growth outlook, expects more tourists

The Ministry of Finance has maintained its economic growth outlook for 2023 at 3.8%, buoyed by a rebound in tourism and domestic demand, but an official said exports would slow down this year.

10:48

FDA pulls pesticide-laced pot noodles

The Food and Drug Administration (FDA) has suspended sales of a Korean instant noodles brand after Taiwan's Food and Drug Administration (TFDA) announced that pesticide residue was found in some packages.

10:00