Thai rubber glove maker Sri Trang seeks to raise $480m via IPO

IPO

Sri Trang Gloves Thailand (STGT) plans to raise 14.9 billion baht ($480.34 million) in an initial public offering (IPO), it said in a filing on Monday, in the country’s biggest IPO amid the coronavirus outbreak.

The rubber glove maker booked revenue of 3.79 billion baht in the three months ending in March, up 25% from 2.98 billion baht a year ago.

The increase was driven by rubber glove sales of 6.2 billion pieces, up 28.7% from the same period a year ago, and new production lines and new factories in southern Thailand.

The company said sales had increased partly due to the COVID-19 pandemic.

Gross profits nearly doubled in the first quarter this year, jumping 79.7% to 706.6 million baht, also helped by lower oil prices.

The IPO period will be between June 23 to 25 and the company plans to sell 438.78 million shares, priced at 34 baht each.

The funds raised will be used for to expand production capacity and improve efficiency between 2020 until 2026, and to pay off debt.

Sri Trang Gloves’s facilities in Thailand have a production capacity of 32.6 billion gloves per year.

After the share sale, its parent company Sri Trang Agro Industry Pcl <STA.BK> will reduce holdings from 73% to 50.7%.

Finansa Securities Limited is its financial advisor.

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.