Charoen Pokphand Group is exploring an initial public offering (IPO) of its seed and animal feed business on the Stock Exchange of Thailand that could raise as much as $1 billion, according to people with knowledge of the matter.
The conglomerate is restructuring its upstream agricultural operations to prepare for the potential spinoff, which could include animal feed and seed businesses under Chia Tai Co, the people said.
CP has held initial discussions with prospective advisers on the listing, which could happen as soon as next year, the sources said. A share sale could raise between $600 million and $1 billion depending on market conditions, they added.
Should a transaction proceed, the CP unit would be joining SCG Chemicals Plc and Big C Supercenter Plc in seeking a listing on the Stock Exchange of Thailand. The country has seen a drop in IPO activity this year with only $291 million raised through first-time share sales, down from $544 million in the same period last year, according to data compiled by Bloomberg.
Considerations are at an early stage and details of the IPO including size and timeline could still change, the people said. A representative for CP Group declined to comment.
CP Group is controlled by the Chearavanont family, which is Asia’s fifth richest family with a net worth of $28.2 billion, according to the Bloomberg Billionaires Index. Dhanin Chearavanont, who has a net worth of $4.3 billion, is the biggest shareholder and senior chairman of CP Group, which has interests in agriculture, food, retail and telecommunications.
Established in 1921 as a seed shop in the Song Wat neighborhood of Bangkok, Chia Tai’s offerings range from seeds, fertilisers and plant protection products to agricultural equipment and technologies. The company has more than 1,300 employees, including in seven subsidiaries across Asia and the US.