The Stock Exchange of Thailand (SET) will list Thai Union Feedmill pcl, a producer and distributor of feed for economic animals consisting of shrimps, fish and terrestrial animals, on October 29, under the ticker symbol "TFM". The company has a market capitalization at its initial public offering (IPO) of THB 6.75 billion (approx. USD 202.40 million).
SET Senior Executive Vice President Manpong Senanarong said that TFM would list and start trading on SET in the Agro & Food Industry industry group, Agribusiness sector.
TFM produces and distributes feed for economic animals, and is one of the leading producers and distributors of aquatic animal feed in Thailand. The company has a combined production capacity of 273,000 tons of animal feed annually. It is a subsidiary and flagship company in aquatic animal feed business of Thai Union Group pcl (TU).
TFM has a registered paid-up capital of THB 1.00 billion. It offered 109.3 million shares, of which 90 million are newly issued shares and 19.3 million are existing common shares held by TU, with a par value of THB 2.00 each through the stock offering. The company allocated 40.41 million shares to persons at the underwriter's discretion, 50 million shares to institutional investors, 16.4 million shares to its patrons and 2.5 million shares to the directors, executives and staff of TU during October 19 - 21, 2021, at THB 13.5 each, for a total offering amount of THB 1.48 billion including the fundraising of THB 1.21 billion. The IPO price was equivalent to the price-to-earnings ratio (P/E ratio) of 21.7 times. The earnings per share is equal to THB 0.60, calculated from the company's net profit of THB 311.1 million recorded from the third quarter of 2020 to the second quarter of 2021, divided by fully diluted shares. Bualuang Securities pcl is its financial advisor and lead underwriter.
TFM Chief Executive Officer Bunluesak Sorajjakit said that TFM is committed to continuously developing the production formula and process of its feed, while building product differentiation and boosting standard to secure leadership in aquatic animal feed. TFM currently focuses on the local market and is expanding business to Indonesia and Pakistan. The fundraising will be used to enhance the company's capabilities, in machinery and a new factory in Indonesia which will mainly produce and distribute shrimp feed. In addition, the fund raised will be used for financial restructuring by repaying loans to financial institutions, and as working capital.
TFM's dividend policy is to pay dividends at least twice a year with no less than 50 percent of net profit from its consolidated financial statement after corporate income tax and legal reserves. The dividends must not exceed retained earnings as recorded in a separate financial statement. However, dividend payment may be subject to various factors concerning shareholders' interest.
TFM's three biggest major shareholders after the IPO are TU (51 percent), the Rittirong Boonmechote group (11.84 percent), and Bunluesak Sorajjakit (3.1 percent).
For more information on TFM, 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.thaiunionfeedmill.com and www.set.or.th.