Osotspa Plc, an 127-year-old consumer products conglomerate, is looking to take a diverse range of product lines overseas to ensure long-term sustainable growth.
"We want the business to have sustainable growth for both sales and profit, and survive for another 200 years," said Petch Osathanugrah, the company's chief executive, while detailing Osotspa's IPO plan.
"Osotspa will grow via a portfolio strategy, instead of depending on only one brand as in the past."
Osotspa is scheduled to launch its IPO on Oct 17, offering 603.75 million shares 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 603.75 million shares represent 20.1% of Osotspa's paid-up capital.
Bualuang Securities and Phatra Securities are the company's lead underwriters on the IPO, while JPMorgan 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.
The IPO plan is part of Osotspa's transformation strategy of the past few years, whereby more professionals, particularly from Unilever Thai Holdings, were recruited to manage its businesses and handle its business restructuring.
The company also sold a stake in Future Group, the media firm, and stopped distributing and marketing for Uni-Charm Thailand, the owner of popular Mamy Poko sanitary napkins, in March last year.
"We want to focus on our four core businesses including personal care, beverage, supply chain management, which still have potential to grow in the long-term," said Porntida Boonsa, the company's chief financial officer.
Nonetheless, as a result of business restructuring revenue declined to 26.2 billion baht in 2017 from a high of 33 billion in 2016.
Of the total, 73.3% or 19 billion baht was from the beverage business, 3.64 billion from supply chain management, 2.19 billion from personal care and the remaining 4.1% from other businesses such as confectionery.
Wannipa Bhakdibutr, the company's president, said the company aims to increase domestic sales of beverage and personal care products, introduce new product formula and packaging, launch new premium products for urban dwellers and extend product lines such as health alternatives through the application of data analytics.
"We will also focus on expanding our business in Cambodia, Laos, Myanmar, and Vietnam market," Mrs Wannipa said.
She said the company aims to make a profit from Myanmar operations, planning to set up its own energy drink factory there instead of the original equipment manufacturing (OEM) it does now.
Initially the company will spend about 2.42 billion baht for the new manufacturing facility, which is expected to start operations in the fourth quarter of next year.
Moreover, the company will increase product distribution in Myanmar to include baby products.
"We will also expand distribution channels in Cambodia to make M150 one of the top-three energy drink brands among Cambodians," Mrs Wannipa said.
In Indonesia, the company plans to reposition and increase product brand awareness via the local distributors and mini-marts.
She said the company would also tap into the personal care market in Vietnam early next year.
"The Vietnam and China markets are very big. We are conducting a feasibility study for the proper business model, including the joint venture scheme in Vietnam and China," said Mrs Wannipa.