Thai rubber glove maker Sri Trang plans IPO to raise 14.9b baht

[BANGKOK] Sri Trang Gloves Thailand (STGT) plans to raise 14.9 billion baht (S$669.6 million) in an initial public offering (IPO), it said in a filing on Monday, in the country's biggest IPO amid the coronavirus outbreak.

The rubber glove maker booked revenue of 3.79 billion baht in the three months ending in March, up 25 per cent from 2.98 billion baht a year ago.

The increase was driven by rubber glove sales of 6.2 billion pieces, up 28.7 per cent from the same period a year ago, and new production lines and new factories in southern Thailand.

The company said sales had increased partly due to the Covid-19 pandemic.

Gross profits nearly doubled in the first quarter this year, jumping 79.7 per cent to 706.6 million baht, also helped by lower oil prices.

The IPO period will be between June 23 to 25 and the company plans to sell 438.78 million shares, priced at 34 baht each.

The funds raised will be used for to expand production capacity and improve efficiency between 2020 until 2026, and to pay off debt.

Sri Trang Gloves's facilities in Thailand have a production capacity of 32.6 billion gloves per year.

After the share sale, its parent company Sri Trang Agro Industry will reduce holdings from 73 per cent to 50.7 per cent.

REUTERS