TPBI Pcl, one of the world’s major plastic bag and film producers, plans to sell 25 per cent of its registered and paid-up capital through an initial public offering (IPO) in March.
The IPO proceeds will go towards business expansion overseas through joint venture or acquisition, said Somsak Borrisuttanakul, chief executive officer of TPBI, formerly known as Thai Plastic Bags Industries.
“We are negotiating with some foreign companies for M&A and joint venture opportunities. We would like to tap into new markets particularly ASEAN countries and Africa,” he said.
It presently has total registered and paid-up capital of 400 million baht with a par value of 1 baht apiece. Tisco Securities is a financial advisor and lead underwriter for this IPO.
Currently, it has two production plants in Thailand with total production capacity of 64,920 tonne per annum.
One plant, located in Nakhonpathom, manufactures plastic bags, garbage bags and film with the annual production capacity of 12,840 tonnes. The other with total capacity of 52,080 tonnes per year is the major production base for export to European countries, Japan and Australia.
The CEO cited that the net profit in 2015 would grow by 40 per cent from 2014 thanks to its expansion in Vietnam. It recorded total revenue of 3.46 billion baht and the net profit of 274.18 million baht for the first nine months of last year. The debt-to-equity ratio is 0.91 times.