Thailand’s CBG to raise $215m from IPO

Thai energy drink maker Carabao Group PCL (CBG) is expecting to raise seven billion baht ($215.38 million) after pricing its initial public offering (IPO) at 28 baht per share, today.

CBG will be selling 250 million shares, that represent 25% of the company’s equity capital, this month.

The funds raised from the IPO will be spent on repaying debts of 4.5 billion baht so that the company can eliminate the interest burden of 100 million baht per year. The rest will be used to expand its business in the overseas market.  

Currently, around 30% of total sales of CBG come from exports and the company plans to increase the revenue from exports to about 50% of its total. For this, CBG will focus on the markets in Cambodia, Laos, Myanmar and Vietnam.

Earlier, the company share price was set in a range between 26 and 28 baht against the at par value of one baht each. The price at the top end of a range has reflected strong demand, said the source in know of the listing, who declined to be named.

One of the main shareholders of Carabao Group is Thailand’s legendary rock band Carabao, led by Ad Carabao (Yuenyong Opakul). The public listing of CBG  gives a valuation of 3.9 billion baht to the rock band’s (Yuenyong Opakul’s group) 141.50 million company shares.

 CBG is a holding company, which manufactures and distributes Carabao Dang-brand energy drinks.

With a 26% share in the 36-billion-baht local energy drink market in 2013, Carabao Dang was the second largest energy-drink brand after M-150 of Osotspa Group, which had a market share of 45%.

Meanwhile, the company has recently introduced an electrolyte beverage called Start Plus Zinc, claiming that it not only rejuvenate the body but also revitalises personal appearance.

The company plans to sell around 5 million bottles of Start Pluz Zinc each month and by the end of this year, it is targeting a 10% share of the electrolyte-drinks market, valued around 6 billion baht, 

CIMB and Kasikorn Securities are the company’s advisor on the IPO.

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. 
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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.