The Siam Cement Public Company Limited (SET: SCC) announced on Wednesday that it will list its subsidiary SCG Chemicals Company Limited (SCGC) in an initial public offering (IPO), which could raise around THB38.5 billion.
The Board of Directors Meeting of SCC, held on 26 January 2022, approved the plan to issue and offer newly issued ordinary shares in an initial public offering, and to list SCGC’s ordinary shares on the Stock Exchange of Thailand (SET) as a holding company.
The portion of the newly issued ordinary shares to be offered in the IPO will not exceed 25.2 percent of its paid-up capital after the paid-up capital increase post-IPO. It is anticipated that SCGC would mainly use the proceeds raised through the IPO for investment in business expansions domestically and internationally, financial restructuring and working capital.
After the offering of IPO Shares, SCC will remain as the major and controlling shareholder of SCGC, and SCGC will remain as a subsidiary of the company post-IPO.
SCGC will allot a maximum of 3,854,685,000 shares, each with a par value of THB10, for the IPO, in which these shares will be offered to the public, including but not limited to the company’s shareholders with pre-emptive rights meaning persons whose names are included in the company’s shareholder register as of the record date, which will be determined by the company’s Board of Directors, and whose mailing addresses are in Thailand, unless any amendments may be made as deemed appropriate at SCGC’s discretion, as permitted under applicable law, cornerstone investors, institutional investors, related persons and/or patrons of SCGC and/or its subsidiaries and/or other natural or juristic persons and an over-allotment agent (if any), as permitted under applicable law and SCGC’s Board of Directors deem appropriate.
SCGC expects that up to 15 percent of the total IPO Shares will be allotted to the SCC’s shareholders with pre-emptive rights, unless any amendments may be made as deemed appropriate at SCGC’s discretion by its Board of Directors and/or any person designated by them, as permitted under applicable law.
The listing plan is subject to SCGC being granted permission by the Office of the Securities and Exchange Commission (SEC) to offer its newly issued ordinary shares for IPO, and the relevant filings and draft prospectus taking effect.
SCG Chemicals Company Limited (SCGC) conducts business as a holding company by investing in other companies whose main businesses involve the manufacturing of chemicals, and other relevant businesses.
The transaction will reduce SCC’s burden to provide financial support for SCGC, because SCGC will be able to mobilize funds by itself through the capital markets or other sources after its listing on the SET.
At the same time, SCGC can use the proceeds raised through the IPO for investment in business expansions domestically and internationally for the expansion of HVA and Green business, as well as financial restructuring, working capital, and other purposes. This will improve SCGC’s competitiveness in the future.
