Do Day Dream Plc, the producer and distributor of Snailwhite skincare products, plans to launch an initial public offering (IPO) soon to raise funds for expansion of production capacity and distribution channels.
The company aims to offer 76 million shares at one baht per par value and it already submitted an IPO filing for listing on the Stock Exchange of Thailand in August, said chief financial officer Piyawat Ratchapolsitte.
Bualuang Securities is the company's financial advisor and lead underwriter.
After the IPO, the company's shareholding structure will change. The Pornpatanarak family's stake will be changed from 93.2% to 70.8%. North Haven Thai Private Equity Clarity Co Ltd, managed by Morgan Stanley, will see its stake slightly reduced from 6.3% to 4.7%. Other shareholders' stakes will be changed from 0.6% to 0.4%.
The general public will hold 24.05% after the IPO.
The IPO will help raise funds for expanding the company's production plant in Rojana Industrial Park in Ayutthaya province and increasing distribution channels both domestically and across Asia, said Mr Piyawat.
The listing plan also supports research and development for product innovation, he said.
"Our vision is to become one of the top three leaders in Asia's beauty product market in the next 10-20 years in terms of sales and market capitalisation," said chief executive Sarawut Pornpatanarak.
"The concept 'beauty is healthy' and the key strategy to make Snailwhite a top-of-mind brand."
The company has two main businesses: Snailwhite skincare products under its own trademark Mamu Life, and an original equipment manufacturer business that produces skincare products for other small brands.
Snailwhite products cover six categories: facial skincare, body skincare, facial cleansing, body cleansing, sunscreen and gift sets.
The company's foreign markets comprise China, Hong Kong, Myanmar, Cambodia and Laos.
Snailwhite products are popular among Chinese tourists, becoming one of the most sought-after souvenirs from Thailand.
Chinese consumers have become a key segment driving sales revenue to jump from millions of baht to over a billion baht between 2013 and 2016.
Sale revenue tallied 1.2 billion baht last year, up from 955.1 million in 2015. Net profit registered 335 million baht, up from 193.9 million in 2015.
Sales revenue was recorded at 872 million baht in the first half of this year, an increase of 24.1% year-on-year, driven by growth from overseas markets, especially China, where sales grew by 35% year-on-year.
In the first half, sales volume in overseas markets increased significantly to 332 million baht from 72 million year-on-year, contributing 38% of total sales.
