Thai Beverage is considering an initial public offering (IPO) that could raise as much as USD 2 to USD 3 billion. Supposedly, the Singapore-listed company has approached banks to evaluate a possible listing of its Thai and Vietnamese beer assets. Thai billionaire Charoen Sirivadhanabhakdi, founder of Thai Beverage, is speaking with potential advisers about listing the brewery unit next year, Bloomberg reported.
The transaction would value ThaiBev about USD 10 billion, which is one highest valuations in the beer market in South-East Asia. The move follows the example of AB InBev which has recently spun off its Asian business into a new company called Budweiser Brewing Company APAC and helped the indebted brewer to raise a total of approximately USD 5 billion (inside.beer, 29.9.2019). Carlos Brito, CEO of AB InBev told the Financial Times in July that “the number one reason to do the listing is to have a platform in the region that is seen as closer to those markets…” Specifically, Brito meant that shares of the listed company can be traded as a currency in further mergers and acquisitions in South East Asia.
In December 2017, Vietnam Beverage Company, Vietnam’s local unit of ThaiBev secured 54% of the shares of Vietnam’s leading brewer Sabeco in an auction at a record price of USD 4.84 billion. The sales price marked a 36 multiple of core earnings, which is a hefty premium over other deals in the beverage industry (inside.beer, 18.12.2017).
The financial markets welcomed today the announced of a possible IPO. After Bloomberg published the news this noon (Singapore time), ThaiBev’s shares climbed more than 5% and trading was halted late afternoon.