Sri Trang Gloves Thailand makes stellar debut, shares surge 75%

Photo by Drew Hays on Unsplash

Shares of Sri Trang Gloves Thailand (STGT) began trading on Thursday at more than 75% above their initial public offer (IPO) price in the country’s first listing since the coronavirus pandemic escalated.

The company, the world’s third-largest rubber glove producer after Malaysian firms, Top Glove and Hartalega, plans to use 14.6 billion baht ($470.36 million) from the funds raised to expand production and repay debt, it said in a filing.

Its shares reached 60 baht after markets opened, up from the IPO price of 34 baht.

“STGT’s story and timing is unique because this company benefits from the pandemic directly, unlike Central Retail,” said M Corp Review analyst, Athaporn Arayasantiparb.

The listing is Thailand’s third this year after top retailer Central Retail Corporation Pcl and Yggdrazil Group Pcl. February’s IPO by Central Retail Corp was Thailand’s largest.

STGT booked revenue of 3.87 billion baht for the three months ending in March, versus 3 billion from the corresponding period last year, fuelled by rising global demand for latex gloves to fight the pandemic, as well as lower rubber prices.

Net profit in the first quarter rose 184% to 421.89 million baht. STGT has a dividend policy of at least 30% of net profits.

Risk factors included competition from other manufacturers and fluctuations in the price of raw materials, it said.

“Regardless of whether the pandemic dissipates or recurs, it is impossible for them to maintain their momentum in the long run,” Athaporn said, adding that other producers would rush to fill the supply gap.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.