Century-old consumer goods conglomerate Osotspa Plc expects to launch an IPO early next month in a deal expected to be the largest corporate fundraiser this year.
Some 603.75 million IPO shares will be offered to the public on Oct 1-4 and 8-10 at a price of 22-25 baht per share, with a par value of 1 baht.
The total fundraising size is expected to be 13-15 billion baht.
The 603.75 million shares represent 20.1% of Osotspa's paid-up capital. Of the total, 506.8 million will be newly issued shares and the remainder will be existing shares, with 67 million offered by Orizon Ltd and 30 million to be sold by Y Investment Ltd.
Some 392.25 million shares, or 65% of total shares, will be offered to domestic investors such as retail and institutional investors, company sponsors and employees. Foreign investors will be offered 211.5 million shares, which are 35% of the total.
The company's paid-up capital as of April 2018 amounted to 2.497 billion baht, which will rise to 3 billion baht after the IPO.
Bualuang Securities and Phatra Securities are the company's lead underwriters on the IPO, while JP Morgan Securities and Merrill Lynch Singapore will act as international underwriters.
Proceeds from the share offering will be used for business expansion in both domestic and international markets, product distribution and quality development, loan repayment, and working capital.
Niti Osathanugrah will see his shareholding diluted to 16.3% from 25% after the IPO, Orizon's will be reduced to 17.9% from 24.2%, chairman and chief executive Petch Osathanugrah's will shrink to 4.98% from 6%, Phurat Osathanugrah's to 1% from 1.2%, Ratch Osathanugrah's to 4.98% from 6%, and Seri Osathanugrah's to 4.2% from 5.1%.
The Osathanugrah family holds the lion's share of Osotspa.
Osotspa's business spans glass, lifestyle and consumer products, drinks, medicine, and products for kids.
Southeast Asian countries including Myanmar, Cambodia and Laos are the company's focus, while it ships drinks to 25 countries.
The company's flagship brands include M-150, M-100 and Lipovitan-D energy drinks, Ole candy, Babi Mild powder, 12 Plus roll-on deodorant and Tamjai Para tablets.
Osotspa reported revenue of 12.5 billion baht in this year's first half, with 1.5 billion worth of net profit.
The company reported revenue of 32 billion baht in 2015, 33 billion baht in 2016 and 26.21 billion baht last year, with net profit of 2.34 billion, 2.98 billion and 2.94 billion baht, respectively.