BG Container Glass Plc (BGC), a maker and distributor of glass containers, has set an initial public offering (IPO) price of 10.20 baht per share for an offering of 194.44 million shares, aiming to raise funds for business expansion.
The company has total registered capital of 3.472 billion baht, with 694.44 million shares at a par value of five baht.
BGC will allocate 28% of total registered capital or 194.44 million shares to the IPO offering.
Shares of major shareholders in the company will be diluted to 72% after the IPO.
Kasikorn Securities is the lead underwriter, with other underwriters consisting of KT Zmico Securities, SCB Securities, Bualuang Securities and Tisco Securities.
During the Oct 8-10 booking period, 175 million IPO shares will be allocated to investors and sponsors and 19.44 million to the company’s directors, management and employees. The first trading day is scheduled for Oct 18.
BGC managing director Silparat Watthanakasetr said the IPO offering aims to raise funds for loan repayment, expanded production at a glass packaging factory in Ratchaburi province and working capital.
As of June, the company had six subsidiaries with 10 glass furnaces and a combined production capacity of 3,095 tonnes a day, Mr Silparat said.
Factories are located in key strategic provinces, including Pathum Thani, Ayutthaya, Prachin Buri and Ratchaburi, which facilitate sourcing of raw materials and logistics cost management.
“The company is constructing a glass packaging plant and a glass furnace in Ratchaburi to serve growing demand from local and foreign investors with an initial investment of 2.5 billion baht,” Mr Silparat said.
He said the new plant will increase production capacity by 400 tonnes a day to 3,495 tonnes, with commercial operations expected to commence this quarter.
BGC makes five glass packaging products: beer bottles, drinking bottles for soft drinks, food bottles, pesticide bottles and medicine bottles.
For the first six months, the company reported total revenue of 5.12 billion baht and a net profit of 270.1 million baht.
Net profit rose by 122% year-on-year from 121.7 million baht in last year’s first half, due to a decline in production costs after completing the transfer of the company’s production facility from Rayong to Ratchaburi.
In 2017, the company reported total revenue of 11.22 billion baht and a full-year net profit of 250 million baht.
Mr Silparat said BGC plans to increase exports to existing markets such as Myanmar, Laos, Cambodia and Spain, with an additional focus on Vietnam, Australia and New Zealand.
Revenue from exports currently contributes 7-8% of total revenue, and BGC has set a target to achieve 20% of its total revenue from exports over the next five years, he said.
“Glass packaging has continuously grown, supported by growing demand from food and beverage consumption of both locals and foreigners, as well as the product recycling trend,” Mr Silparat said.
