The Stock Exchange of Thailand (SET) will list Srinanaporn Marketing pcl, a manufacturer and distributor of beverage and snack products, on July 20, under the ticker symbol "SNNP". The company has a market capitalization at its initial public offering (IPO) of THB 8.83 billion (approx. USD 270.44 million).
SET Senior Executive Vice President Manpong Senanarong said that SNNP would list and start trading on SET in the Agro & Food Industry industry group, Food & Beverage sector.
SNNP manufactures and distributes soft drinks and snacks under well-known brands comprising 1) beverage products: Jele, Daiyamoto, Coolly Kool, and Magic Farm; 2) snack products: Bento, Tako, Lotus, and Chocky. The company distributes products through a wide variety of sales channels in both modern trade and traditional trade, generating total sales from domestic and overseas markets especially CLMV countries including Cambodia and Vietnam. SNNP has invested in distribution business to diversify its own product distribution risks, relying less on outside distributors, while enhancing the company's accessibility to consumers.
SNNP has a registered paid-up capital of THB 480 million, consisting of 720 million existing common shares, and 240 million newly issued shares with a par value of THB 0.50 each. Of the total newly issued shares, the company offered 149 million shares to persons at the underwriters' discretions, the company's patrons, and directors and executives of the company and subsidiaries during July 7 - 9, while the remaining 91 million shares were allocated to institutional investors during July 12 - 14, at THB 9.20 each, for a total of THB 2.21 billion. The IPO price was equivalent to price-to-earnings ratio (P/E ratio) of 83.2 times. Siam Commercial Bank pcl is the financial advisor and SCB Securities Co., Ltd. is the lead underwriter.
SNNP Chief Executive Officer Viwat Kraipisitkul said that SNNP has the vision to focus on delivering excellence in products and services and building brand top-of-mind among consumers of all generations and genders. The company is committed to offering quality products to consumers at all times and all occasions. SNNP has established the R&D team to continuously create varieties of innovative products, and distribution system with an extensive market coverage. The IPO proceeds will be used to invest in building a new factory via a subsidiary in Vietnam for the production of beverages and snacks, aiming to strengthen international trade, with more efficient cost management, and to become ASEAN's leader in soft drinks and snacks. Moreover, part of the fund raised will be used for repayment to financial institutions, and as working capital.
SNNP's dividend policy is to pay no less than 60 percent of net profit after corporate income tax based on the company's separate financial statement and various reserves. The dividend payout may be subject to change from the set policy, depending on the company's performance, cash flows, financial liquidity, investment plan, other necessity and suitability in the future, as well as other factors.
SNNP's major shareholders after the IPO are Kraipisitkul family and Chaisathaporn family who are the firm's founders holding 75 percent in total.
For more information on SNNP, please see the company's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information, please visit www.snnp.co.th and www.set.or.th.