PPP Green Complex Co (PPPGC), a local palm oil manufacturer, is preparing to raise funds through an initial public offering (IPO) amounting to 342.8 million shares in a move to grow its businesses, including palm oil and oleochemical production.
Oleochemicals are a feedstock for making cosmetics, lubricants and other chemical products.
A portion of the funds raised will be used to strengthen its position in the supply chain for palm oil and palm oil-derived oleochemicals, according to PPPGC.
The Securities and Exchange Commission approved the company's IPO scheme, paving the way for share sales.
PPPGC assigned Siam Commercial Bank (SCB) as its financial advisor.
Tanik Tarawisid, SCB's first executive vice-president for investment banking and capital market functions, said PPPGC is working on a share subscription plan in the energy and infrastructure category as well as considering a subscription period.
The par value is set at 2 baht per share. Shares subscribed by investors are equal to 30% of PPPGC's registered capital, said Mr Tanik.
Chaitasn Wanchai, chief executive of PPPGC, said the company also plans to use the funds to support its cooking oil repackaging, cooking oil manufacturing under its "Meesook" brand, as well as debt payment.
The repackaging involves making cooking oil for other brands.
"Finding ways to strengthen and develop Thailand's palm oil industry by increasing the productivity and profitability sustainably is always our priority," said Mr Chaitasn.
PPPGC, which was established in 2015, is a joint venture involving three companies in the Thai palm industry: PTG Energy Plc, TCG Holding Co and RD Kaset Pattana Co.
PPPGC has undergone several business transformations to become Thailand's leading integrated and sustainable palm oil plantation operator and manufacturer of palm oil products, biodiesel and cooking oil.
Its palm plantation is located on 1,000 rai of land in Prachuap Khiri Khan's Bang Saphan Noi district.