The famous organic vegetable restaurant in Thailand, ‘Ohkajhu’, has submitted a filing for the initial public offering (IPO) to list in the Thai stock exchange with an aim to expand its healthy restaurants.
The filing has been submitted to the Securities and Exchange Commission (SEC) for the issuance of 159 million shares with Bualuang Securities as its financial advisor for Pluk Phak Praw Rak Mae Company Limited, the operating company of Ohkajhu.
To achieve its goal of providing healthy foods for consumers, the listing could unlock Ohkajhu’s potential for expansion at a faster pace. There are 27 branches nationwide in total, according to its official website, up from only one in 2013.
In 2020, Ohkajhu recorded a total revenue of THB 836.80 million, with a net profit of THB 33.09 million, while reporting a total revenue of THB 803.02 million in 2021, with a net loss of THB 84.55 million, which was possibly due to the negative effects of the COVID-19 pandemic. Meanwhile, the company recorded a total revenue of THB 1,214.91 million, with a net profit of THB 38.32 million in 2022, and reported a total revenue of THB 1,716.85 million, with a net profit of THB 140.65 million in 2023.
In 2021, Ohkajhu made one of the biggest moves by signing a deal to sell 20% of its non-listed shares to PTT Oil and Retail Business Public Company Limited (SET: OR), a retail arm of Thailand’s major oil and gas company, PTT Public Company Limited (SET: PTT).
The listing of Ohkajhu in the Thai stock market would benefit OR from the increasing value of Ohkajhu’s stock when the company becomes public. The company would have greater recognition of revenue and profit from Ohkajhu in the future.
The listing also eases the burden on OR, which would need to add more capital to fund for expansion since Ohkajhu can use the proceeds from the IPO to expand its business. The possibility for Ohkajhu to offer dividend payments to shareholders would also benefit OR as well.
Moreover, the listing in the Stock Exchange of Thailand could offer new opportunities for Ohkajhu to expand its business in PTT Station from the current 3 operating branches, which would also benefit OR.
