ThaiBev has now laid out its plans for listing its beer business on the Singapore Stock Exchange (SGX). According to a statement published today, the company has received a no-objection letter from Singapore Exchange Securities Trading in relation to the proposed spin-off listing called BeerCo Ltd. Not included in the IPO will be ThaiBev’s distilling business with brands like SangSom rum, Meridian brandy and Drummer whiskey.
The company is likely to sell about 20% of its equity in a move that will value the brewery unit at about $10 billion. If successful, ThaiBev’s listing will be the largest initial public offering (IPO) in Singapore in nearly a decade.
In November 2019, ThaiBev already considered an IPO on SGX (inside.beer, 29.11.2019) but when the COVID-19 pandemic struck the world in early 2020, ThaiBev said it would step back from a listing for the time being. Last month, however, Reuters reported that the company had revived plans for an IPO. (inside.beer, 15.1.2021)
It is not the first time for ThaiBev to consider an IPO. In 2005, an attempt to list ThaiBev on the Thai stock market triggered protests from Thai Buddhist groups due to concerns over the dangers of increased consumption of alcohol. Finally, ThaiBev decided to refrain from being listed on the Thai stock exchange
ThaiBev is controlled by tycoon Charoen Sirivadhanabhakdi (76), a Thai billionaire business magnate of Chinese descent. He first big hit was in 1985 when he bought 100% of the state owned licences for liquor production.
In 1991, Charoen teamed up with Danish brewer Carlsberg to tap into Thailand's growing beer market, which was at the time dominated by Boon Rawd Brewery. Three years later, based on what he had learned from Carlsberg, he began making his own beer, branded Chang (Thai for 'elephant'). Within five years, Chang had conquered 60 percent of the local market. Largely eclipsed, in 2003 Carlsberg withdrew from the joint venture with its Thai partner.
Since 2008 Charoen Sirivadhanabhakdi’s son Thapana Sirivadhanabhakdi born in 1975 isCEO and president of ThaiBev.