PSP Specialties Plc, Thailand's largest lubricant producer by capacity, plans to raise funds through an initial public offering (IPO), with the expectation that the listing on the Stock Exchange of Thailand would support its plan to further grow the business.
The company plans to sell 350 million shares, or around 25% of its total shares.
The value of each share has yet to be finalised as PSP Specialties is preparing to organise a roadshow to publicise the company.
CGS CIMB Securities (Thailand) is serving as the underwriter for the listing plan.
Sint Krongphanich, chief executive of PSP Specialties, said part of the money raised through the IPO would be spent on debt repayment after the acquisition of UC Marketing Co, a raw material and goods distributor and seller.
The company will also use the money to pay for its short-term debts and improve its production efficiency.
The remainder would be kept as working capital, said Mr Sint.
PSP Specialties currently makes 212 million litres of lubricant, 27,500 tonnes of grease, 44 million litres of rubber process oil, and 25 million litres of transformer oil a year.
Its production facility and distribution centre is located near the Tha Chin River in Samut Sakhon province.
The company also runs a factory in Myanmar's Thilawa Special Economic Zone, which is located on the outskirts of Yangon.
According to PSP Specialties, more than 95% of revenue comes from the production and sale of raw materials, including lube oil and grease, while the remaining 5% comes from the development of lube oil products and logistics.
Last year, the company saw its revenue grow by 22% to 13.2 billion baht, up from 10.7 billion baht in 2021 and 6.9 billion baht in 2020.
Revenue increased by 0.4% in the first quarter of this year to 3.08 billion baht.
Mr Sint said the company will focus on lube oil solution services and maintain its position as an original equipment manufacturer, rather than selling and marketing lube oil under a new brand, to avoid becoming a competitor to its existing customers.
PSP Specialties has also diversified into an e-commerce business to sell auto parts.