Thai Beverage Pcl is considering moving forward with its initial public offering (IPO) for its beer unit, BeerCo, to capitalize on the surge in global stock markets, while also exploring the possibility of bringing in an equity partner, according to company executives.
The IPO for BeerCo could potentially take place as early as the third quarter of next year if ThaiBev finalizes the decision on the share sale by December, as stated by Michael Chye, the head of the beer products group, during a press briefing in Bangkok on Tuesday.
Furthermore, Thapana Sirivadhanabhakdi, the CEO of Singapore-listed ThaiBev, mentioned that the company has garnered significant interest from potential partners for the beer unit, with discussions currently underway with two interested parties.
However, while plans are in motion for BeerCo’s IPO, he did not confirm whether an equity partner would still be brought in should the share sale proceed.
This revival of plans comes after ThaiBev, under the leadership of tycoon Charoen Sirivadhanabhakdi, set aside a previous proposal to raise up to $1 billion due to unfavorable market conditions two years ago. The current shift in strategy is due to the recent rally in global stock markets coinciding with a trend of central banks worldwide moving towards monetary easing.
Highlighting the global decline in interest rates and the strong recovery of stock markets, Chye emphasized that the company is reconsidering the IPO plan and a decision is expected to be made shortly, potentially within the next few months.
Meanwhile, ThaiBev is also considering options for its spirits business, including a potential initial public offering in Singapore, as outlined in a report by Bloomberg from last year. Preliminary discussions have taken place with banks to assess possibilities, such as selling a stake in the company responsible for producing Thailand’s popular liquor brands, Mekhong and Ruang Khao.
Prapakon Thongtheppairot, president and head of the spirits business at ThaiBev, revealed that the company’s immediate focus is on the IPO of its beer unit, as it is seen as a strategic step towards potentially listing other businesses in the future.
In financial terms, ThaiBev reported a revenue of 217.06 billion baht ($6.7 billion) in the nine months leading up to June, showing minimal change from the previous year. EBITDA increased by 2.2% to 38.6 billion baht during the same period. The beer business specifically saw a notable 10.2% rise in EBITDA, reaching 11.9 billion baht, according to a statement released by the company.
