<article><a style="color: #000080;" href="http://www.tfg.co.th/">ThaiFoods Group (TFG),</a> Thailand-based integrated poultry and swine firm, decided to sell 1.1 billion shares in its initial public offering (IPO), reducing from 1.4 billion shares due to the market uncertainty.</article>

<a style="color: #000080;" href="http://www.tfg.co.th/">ThaiFoods Group (TFG),</a> Thailand-based integrated poultry and swine firm, decided to sell 1.1 billion shares in its initial public offering (IPO), reducing from 1.4 billion shares due to the market uncertainty.
As a result, the proceeds will be around 700 million baht less than its earlier plan, said TFG&#8217;s managing director Win Thanittiraporn.
“Earlier, we expected the price in a range between 2.10-2.30 baht per share. But we decide to give more discount because we cannot pay dividend this year and the market is very fluctuated. Although the proceeds will miss the target, it will not affect any of our investment plans,” he said.
The company has given a 40 per cent discount to its IPO price, which was set at 1.95 baht apiece.
It will spend most of the proceeds on debt repayment, to decrease its debt-to-equity ratio from 2.1 times to 1. However, the company will also reconsider its repayment plan as it will receive lower proceeds.
TFG had postponed the IPO after the bomb blast in Bangkok in August.
For new investment, the company is planning a joint venture with undisclosed partners. This is expected to boost its competitiveness for export and help in the transfer of technology. If this deal is sealed, it will probably issue additional shares for raising fund.
TFG’s revenue this year will not be much different from 17 billion baht in 2014. However, it targets a revenue growth of 20-30 per cent next year mostly due to the rise in the prices of poultry and swine (as a result of the disease outbreak in the United States).
Currently, it generates 90 per cent of its total revenue from the domestic market and 10 per cent from exports. Win said that the company plans to increase the revenue from export to 15 per cent next year and 20-25 per cent in the next three years, after it expands the market in Japan and Europe.
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ThaiFoods Group (TFG) decided to sell 1.1 billion shares in IPO, reducing from 1.4 billion shares due to the market uncertainty.

ThaiFoods Group reduces IPO shares

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