Thai Rubber Glove Maker to Raise as Much as $484 Million in IPO
Thai Rubber Glove Maker to Raise as Much as $484 Million in IPO
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Sri Trang Gloves (Thailand) Pcl plans to raise as much as 15 billion baht ($484 million) in the country’s first initial public offering since the novel coronavirus outbreak.
The company has set an IPO price range of 32 baht to 34 baht per share, Varah Sucharitakul, executive director of Finansa Pcl, the financial adviser, told investors Friday. The final price will be announced June 22, with a subscription period from June 23 to June 25. The company plans to sell as many as 444.8 million new shares to Thai investors, according to a Securities & Exchange Commission filing.
The listing comes amid increased demand for protective gear due the coronavirus outbreak, and improved risk appetite after Thai stocks rebounded from a slump in March. Thailand’s largest rubber gloves manufacturer plans to invest 20 billion baht to double annual production capacity.
The proceeds of the listing will fund expansion and debt repayments, according to the filing. Parent Sri Trang Agro-Industry Pcl is the world’s top rubber maker. The company will make a trading debut on July 2, said Varah.
Producers globally are starting to emerge from a slump induced by the Covid-19 outbreak. Demand for gloves is continuing to rise, but purchases of rubber products by carmakers -- traditionally the biggest customer base -- are still depressed.
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