Chememan Plc (CMAN), Thailand's largest lime and lime derivative chemicals maker and distributor, is aiming for annual lime production capacity to reach 1 million tonnes by 2020.
That surge would make the firm a leading industry player, positioning it among the top 10 lime producers globally.
The increased capacity comes in response to growing demand and will contribute to a broader customer base, which currently includes more than 20 countries across Asia, Oceania and Africa, said chief executive Adisak Lowjun.
He said lime products are used extensively as raw materials in consumer products such as paper, sugar, bioplastics, glass, bottles and animal feed.
Chememan is an Asian leader in lime and speciality chemicals. The company had installed production capacity of 800,000 tonnes a year as of Sept 30, 2017, operating out of three production plants in Saraburi and Rayong provinces, with two major distribution centres in Australia.
The company is also the only lime company in Thailand that possesses both lime production plants and a 25-year mining concession, which is valid until June 23, 2040.
According to a survey conducted on Thailand's lime industry by Frost & Sullivan, Chememan dominates the market with the highest market share for quicklime and hydrated lime in both the domestic and export segments.
In 2016, the company's share of quicklime and hydrated lime sales for the domestic market reached 29% and 21%, respectively, and 81% and 84% for the export segment.
Chememan recorded total revenue of 2.22 billion baht in 2017, with a net profit of 109.3 million.
The company is in the process of expanding its business in India through joint ventures with local partners, in which Chememan will hold a 50% stake, Mr Adisak said.
Meanwhile, Chememan has priced its initial public offering (IPO) at 3.84 baht per share, with the date for public trading on the Stock Exchange of Thailand scheduled for March 21.
The subscription period for general investors will be March 14-16.
The 1 billion baht in registered capital consists of 1 billion in common stock with a par value of one baht per share.
Funds raised from the IPO will be used for lime production expansion in Thailand and abroad, repayment of bank loans and working capital.
Chememan has signed a contract to appoint Tisco Securities as the lead underwriter, while Asia Plus Securities, Finansa Securities, Finansia Syrus Securities, KGI Securities, Krungsri Securities, KT ZMICO Securities and Maybank Kim Eng Securities Thailand will be co-underwriters.
