In its third attempt to go public with its beer unit, ThaiBev seeks to raise USD 800 million to USD1 billion for about 20% of the beer unit, as Bloomberg and Reuters reported today.
In November 2019, ThaiBev already considered an IPO on Singapore Exchange (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. In January 2021, however, ThaiBev revived plans for an IPO. (inside.beer, 15.1.2021) and got an approval by the Singapore Exchange Securities Trading one month later. (inside.beer, 5.2.2021)
However, in April 2021, ThaiBev again shelved its plans “in view of the current uncertain market conditions and volatile outlook, aggravated by the worsening COVID-19 pandemic in Thailand and other countries.” (inside beer, 17.4.2021)
Now, the company intends to resume the listing with a public offering according to a filing to the SGX on Thursday. The size and valuation of the potential fund-raising has been halved from USD 2 billion a year ago to now about USd 1 billion because of decreased market valuations following the effects of the pandemic and the actual political situation.
ThaiBev, the maker of Chang beer, is controlled by tycoon Charoen Sirivadhanabhakdi,Thailand’s richest person. Even after the IPO, ThaiBev intends to retain a significant majority stake in the beer business and will use part of the proceeds generated from the sale to repay interest-bearing debt.
The brewery unit contributed 29% to profits after tax at the parent company in the financial year ended Sept. 30, 2021, still, “the board sees significant growth potential in the beer business and believes that the potential can better be developed with a dedicated board of directors and management team focused solely on growing the beer business,” ThaiBev said today.