NAKHON SAWAN : Thai Identity Sugar Group (KTIS), the country's third-largest sugar miller, is moving ahead with plans to list on the Stock Exchange of Thailand to raise funds enabling expansion including a bagasse-fuelled biogas plant.
Chief executive Parphan Siriviriyakul said the company has appointed Kasikorn Securities (K-Sec) as its financial adviser for the listing.
Group executives were mum on the time frame.
Nattharin Talthong, the executive chairman of K-Sec, said earlier the move if successful would make it the largest listed sugar company on the SET by market capitalisation.
It will also be the largest initial public offering (IPO) for a Thai sugar company, with a projected market capitalisation of 40 billion baht.
KTIS operates an integrated sugar milling complex covering sugar-cane plantation, pulp and paper production from bagasse, hydrated lime production and ethanol made from molasses.
The company is undergoing a group restructuring, as it has several affiliates, with an IPO likely by year-end.
The group consists of five companies with three related to sugar: Thai Identity Sugar Factory, Kaset Thai Sugar and Ruampol Sugar Factory.
Founded in 1974 in Uttaradit province, KTIS is the most sophisticated miller in the North, with daily crushing capacity of 18,000 tonnes.
There are two SET-listed sugar firms.
Khon Kaen Sugar Industry (KSL) was the first. Its 2005 IPO was just over 1.2 billion baht from 279.5 million shares priced at 4.30 baht apiece.
Khonburi Sugar (KBS) followed last year with an IPO price of 9.10 baht with 150 million shares for 1.365 billion baht.
KSL and KBS's market capitalisations have since grown to 20.6 billion and 4.9 billion baht, respectively.
The country's two leading sugar millers - the Mitr Phol Group and the Thai Roong Ruang Sugar Group - have not expressed any interest in listing.
Thailand has 47 sugar factories.
In a related development, KTIS yesterday purchased 40 cane harvesters and loaders, including parts and accessories, worth nearly 500 million baht from John Deere.