Thai Beverage Launches Singapore IPO

[Jai Dee]

Thai Beverage launches Singapore IPO

Singapore (Agencies) Thailand's best-selling brewer launched an initial share offer today worth up to US$1.1 billion (41.93 billion baht) ahead of its listing on the Singapore Exchange.

Thai Beverage Pcl, producer of best-selling Chang Beer launched 4.89 billion shares at a maximum offer price of 36 Singapore cents (28 cents, 8.67 baht) per share, a company statement said. Minimum price is at 26 cents (6.26 baht).

The initial public offering (IPO), the biggest in Singapore in recent years, will allot 4.64 billion shares to international investors and 244.45 million shares to the local market.

It will close on Tuesday, and the company is expected to be listed on the stock market on May 30. Thai Beverage turned to Singapore after strong anti-alcohol protests in Bangkok derailed the firm's local listing.

The activists, led by former prime minister Chamlong Srimuang and Buddhist monks, feared a public listing in Thailand would lead to increased alcohol consumption in a nation that is already the world's fifth largest per capita consumer of alcohol.

The company, which has three breweries and 16 distilleries, said in the statement it intends to use the IPO proceeds to repay outstanding long-term loans and for "general corporate purposes."

"As the leading producer of beer and spirits in Thailand... and one of the leading alcoholic beverages in Southeast Asia by sales volume, Thai Beverage is well positioned to capture the growth of its beer and spirits markets as well as growth in complementary markets," it said.

The company added it "intends to broaden its portfolio of brands by launching new brands to penetrate higher priced market segments" and further invest in existing products.

Source: Bangkok Post - 19 May 2006