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.