Betagro PCL (SET: BTG), Thailand’s leading international food company with over 55 years of history, debuts on the Stock Exchange of Thailand (SET) today. With a total offering value of 20 billion baht and a securities value at an IPO price of about 80 billion baht (including over-allotments), BTG has stood out as the highest-value initial public offering (IPO) stocks in the agriculture and food industry on the Thai capital market, while recording the highest selling value in South East Asia so far this year.
BTG has readied to continue its success with a strategy to build growth by means of investing in value chains both at home and abroad. The company will zero in on the high-value food products and seeking opportunities to invest in new businesses under the New S-Curve model to create continuous and sustainable growth in the future.
Vasit Taepaisitphongse, Chief Executive Officer and President of BTG, noted that the IPO, at 40 baht a piece, has been well received by leading local and international institutional investors as well as individual investors in Thailand amid highly volatile economic and investment conditions.
He said: “That reflects vividly the confidence in the robust business fundamentals and the potential for continuous and sustainable growth of Betagro as a world-class branded food firm. “Betagro is distinctive from other listed companies in the same industry with an integrated business model extending from upstream to downstream. “In addition, Betagro owns quality and diversified brands that are widely recognised and trusted by consumers who find our products through a variety of distribution channels in Thailand and more than 20 countries around the world. “Yet, our operations are supported by efficient data and innovation-driven processes.”
5-year investment Betagro sets its sight on lifting up the food industry, enhancing long-term competitiveness through its five-year investment (2022-2026) to boost the market share domestically and internationally, by the following means:
1) Boosting its production capacity of animal feed to 5.5 million tonnes per year; ramping up processed food and sausages output to 223,000 tonnes per year; setting up swine processing plants capable of dealing with 4.8 million pigs and broiler processing plants capable of handling 270 million chicken.
2) Focussing on food products with high added value such as ready-to-cook and ready-to-eat foods as well as increasing the proportion of premium and standard-branded products.
3) Expanding the company’s business overseas with plans to invest in the establishment of factories and farms to increase production capacity in Cambodia, Laos and Myanmar.
4) Strengthening distribution in the overseas markets and adding more export marketplaces by, for example, increasing distribution channels in key international markets such as Singapore, Hong Kong and Cambodia;
– Expanding into new product groups by increasing brand awareness and forming new partnerships with local businesses;
– Developing more export markets beyond more than 20 countries where it has already established a presence and increasing the volume of orders in the existing markets in the European Union, Japan, Singapore, Hong Kong and the United Kingdom.
Betagro is also looking for new New S-Curve growth opportunities by earmarking 900 million baht in capital during 2022 and 2026 for new businesses through the Venture Building and Venture Capital methods in three branches:
1) Developing the ability of consumers to access high quality products
2) Creating new protein sources
3) Optimising the supply chain in the existing agricultural industry, as well as focussing on the research and development of new products that are in line with the core business to support the opportunity for continuous and sustainable growth in the future
Mr Vasit noted: “It is a great pride for Betagro’s management team, staff and all stakeholders for contributing to the BTG listing on the Thai bourse. This (listing) is another crucial step in Betagro’s pathway to take its business to the next level, for the money received from this fundraising will help realising our major business expansion, strengthening the financial position, attracting professional executives and staff to the company, drawing in potential business partners from the country and abroad, while raising environmental, social and governance (ESG) standards. All of these will create opportunities to spur sustainable growth in the future for the maximum benefit of shareholders and stakeholders.”
According to the BTG chief, the 20 billion baht fund raised from the flotation of 500 million shares inclusive of full over-allotments in the IPO process is specifically meant for:
1) investment for acquisition and/or construction of new farms and plants in the amount of about eight billion baht
2) Capital restructuring through payment of short-term and/or long-term liabilities to financial institutions in an amount of 8,960-10,500 million baht
3) Using as working capital in an amount of not more than 1,021 million baht
Investors who missed the investment opportunity during the IPO stage can still have access to BTG’s interests and ownership on the SET trading floor from today onwards.
Meanwhile, Kiatnakin Phatra Securities PCL is also due to start stabilising the BTG share price in the secondary market for a period of not more than 30 days from 2 November to help reduce the volatility of the stock price and building investor confidence.
About Betagro PCL
Betagro is a leading integrated food and agro-industrial company in Thailand. Its businesses encompass the production and distribution of animal feed, animal pharmaceuticals and additives, livestock, pork products, chicken meat and eggs along with related processed foods, pet food, the distribution of farm equipment and related research and development operations. The company has employed a Vertically Integrated Business Model on many aspects of its product value chain, ranging from animal feed production to culture and marketing animal breeders, commercial farming, meat slaughtering, processing and marketing. BTG operates a host of high standard food processing and manufacturing plants, possessing the research capability and internal control system that monitors and controlling every step of the food value chain, enabling the company to control quality and manage costs effectively. The company is also committed to producing high-quality and safe products, applying bio-security measures for strict quality control according to international standards. Stay up-to-date with the latest Betagro news at Facebook Betagro Group, LinkedIn Betagro Group, YouTube Betagro Group or visit www.betagro.com. www.betagro.com
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