Petchsrivichai Enterprise Public Company Limited (PCE), a leader in the integrated palm oil industry, started its first day of trading on the Stock Exchange of Thailand (SET), highlighting the Company’s readiness as an integrated producer and distributor of palm oil products with the supply chain management system fully in place to respond to customer needs in the form of “One-Stop Service”. The Company is also proceeding with the expansion of the palm oil extraction plant and palm olein production plant for human consumption, to take advantage of the opportunity while the palm oil industry is expanding both domestically and in the export market, to create growth in the bid to become a leader in the palm oil industry at the national level.
Mr. Prakit Prasitsupaphol, Chief Executive Officer & Managing Director of Petchsrivichai Enterprise Public Company Limited (PCE), announced that the Company began listing PCE shares on the Stock Exchange of Thailand (SET) for the first day (September 12, 2024) in the “Agro & Food Industry Group, Agribusiness Sector”, under the abbreviation “PCE” for securities trading. This followed the successful initial public offering (IPO) of 750 million common shares at a price of 2.28 baht per share. At the IPO, PCE shares received overwhelming interest from investors, reflecting confidence in the Company’s integrated palm oil business and in so doing, helped to make PEC one of the stocks that has attracted keen interest from investors from the first day of trading.
PCE has set the growth strategy to become a leader in the integrated palm oil industry at the national level through the following strategies: 1. Being a leader in the integrated palm oil industry with full readiness in the management of the supply chain system, as the group companies possess combined production processes for palm oil products from upstream to downstream, warehousing and port services, as well as the modern transportation processes to meet customer needs in the form of “One-Stop Service” with an accumulation of nearly 40 years of direct experience in the industry; 2. The group’s location is in Surat Thani Province, which is an ideally strategic area for raw material sourcing, as well as being close to customers and to sea ports; 3. The group’s production processes and quality control that have been certified on accordance with international standards.
The Company plans to use the funds raised in the SET to enhance its growth potential by investing in the expansion of the crude palm oil extraction plant to double the production capacity from the current 60 tons of fresh palm fruits per hour, along with increasing the stability of the supply of raw material and crude palm oil supply for further refining processes, as well as investing in machinery and equipment to double the production capacity of palm olein for consumption from the current 300 tons per day. The Company’s two production plants were already operating at 80-90 percent of their installed production capacity. Moreover, the fund will also be used to improve the efficiency of the production process, to expand the market in all sectors both domestically and in the export markets, and to invest in technology that will be applicable to research and further development, so as to add value to products and create opportunities in new markets in the future.
As for the operating results for 2021 to 2023, the total revenues were 28,178.54 million baht, 32,696.15 million baht, 24,722.79 million baht, respectively, while the net profits were 847.33 million baht, 214.40 million baht, and 330.50 million baht, respectively. For the first six months of 2024, the group had a total revenue of 12,921.47 million baht and a net profit of 211.97 million baht, which were similar to those of the same period of the previous year. In 2023, the group’s main revenue was derived from the palm oil industry at 98.61 percent, with the sales proportion of 63.67 percent for the domestic market and 36.33 percent for the international market.
Mr. Somsak Sirichainarumitr, Chief Executive Officer of Asset Pro Management Company Limited (APM), as a financial advisor, said PCE is considered to be the first fully integrated palm oil industry leader to be listed on the Stock Exchange of Thailand and has the potential to grow in line with the continuous expansion of the palm oil industry spurred on by the growing purchasing power in both domestic and international markets, whether for consumption or applications, for the renewable energy groups where demands are continuously increasing, as well as in the use of oleochemicals as ingredients in products such as cosmetics, soaps, skin care creams, etc., following the recovery of the domestic and global economies. They are also applicable for use in the biodiesel industry.
Ms. Nalyne Viriyasathien, Managing Director, Investment Banking and Advisory of Maybank Securities (Thailand) Public Company Limited, as the Joint Lead Underwriters, said that the IPO offering of PCE’s 750 million shares in total at an offering price of 2.28 baht per share totaling 1,710 million baht, was enthusiastically received by both retail and institutional investors. This was because investors were confident in the business potential of PCE, a leader in the palm oil industry with high growth potential. They also believed that PCE would be another quality stock for investors in the Thai capital market.
Mr. Payupat Mahabhol, Managing Director for Investment Banking, Yuanta Securities (Thailand) Company Limited, as the Joint Lead Underwriters, said that he was confident that PCE would be a growth stock that would generate good returns for investors. With the Company’s strength as a leader in the integrated palm oil industry and its ability to manage the supply chain system that provides customers with a One-Stop Service, this can help reduce extraneous costs for customers. Therefore, for PCE as an enterprise with strong business partnerships, this fund-raising will help to strengthen its capital that is to be used to expand the business to further the Company’s growth according to its business plan.
