Shares of JSP Pharmaceutical Manufacturing (Thailand) (JP), a medicine and nutritional supplements distributor, opened trading at 9.40 baht on the Market for Alternative Investment (MAI) on Tuesday, up 34.29% from the initial public offering price (IPO) at 7 baht.
JP's share price closed at 10.30 baht, up 47.14% from the IPO price with trading worth 6.9 million baht.
As JP is the developer, manufacturer and distributor of modern and traditional medicines, herbal products and nutritional supplements, its shares have become a growth stock as the business flourished during the pandemic in the last two years, especially since the company has Thai herbal products that protect against Covid-19, said JP's chief executive Sittichai Daengprasert.
Mr Sittichai said the proceeds from the IPO share sales will go towards the development of new health products under the company's brands, namely COX, JSP, EVITON and Suppa-Osot, with a goal to produce 4-5 new products each year.
The company expects to generate higher profit margins by boosting sales of the new products to 50% of total sales of all products, increasing capacity, improving capital management efficiency and expanding original equipment manufacturer production that will ultimately lead to the R&D, production and distribution of medicines and nutritional supplements, said Mr Sittichai.
Product distribution will be achieved through a multi-channel marketing strategy to encompass pharmacies, modern trade stores, convenience stores, TV home shopping and online channels.
JP is preparing its manufacturing base to produce extracts from cannabis and hemp. These extracts are to be sold as processed products or used as ingredients in health products.
Mr Sittichai said the company has entered the markets of Cambodia, Laos, Myanmar, Vietnam and Singapore. Each country has potential for JP's products to grow in, especially their Thai herbal products.
"Listing on the bourse is a crucial step for the company to pursue sustainable growth in order to become a leader in R&D, manufacture and distribution of medicinal and nutritional supplement products in Thailand," said Mr Sittichai.
Chanachai Joonjiraporn, chief executive of ASL Securities and the lead underwriter, says JP's shares are growth stocks because of the strength of its operations. Its commitment to pursue long-term and sustainable growth lays a firm foundation on which its shares are grounded and is the reason that the company will attract sustained investors' interest in JP's shares.
JP has a paid-up capital of 227.50 million baht, consisting of 340 million existing ordinary shares and 115 million newly-issued ordinary shares with a par value of 0.50 baht per share.
Up to 113.75 million shares of the latter are offered to individuals at the discretion of underwriters and institutional investors, while up to 1.25 million shares are offered to directors, executives and employees of the company.
The shares had an IPO price of 7 baht per share, with a fundraising value of 805 million baht and a securities value at the IPO price of 3.19 billion baht.
JP reported second-quarter performance of 2021 with a net profit of 11.89 million baht, an increase of 46.3% from the same period last year.
