Bangkok Ranch (BR) announces attractive IPO offering - The Duck Meat Leader share goes for 8.80 baht - Proceeds to build new factory for AEC Expansion
Bangkok Ranch Plc. (BR), Thailand’s No.1 Duck Meat Provider and one of the World’s Top 10 players, offers its IPO at 8.80 Baht per share, providing investors strong growth potential. IPO Proceeds will be used for business expansion nationwide and penetrating key AEC markets.
Mr. Joseph Suchaovanich, Founder and Chief Executive Officer, Bangkok Ranch Plc. (BR), Thailand’s leading Integrated Duck Meat Producer and distributor, reveals that The Company offers 360.4 million IPO Shares to the both general investors and institutional investors at 8.80 Baht per share. The Proceeds from IPO will be used mainly to expand the business capacity by building a new large-scale slaughterhouse and duck meat processing factory in Far Eastern part of Thailand. In the first phase, the new factory will process around 9-10 million ducks per year. That represents around additional 40% capacity increase to the current combined capacity of 22 million ducks per year. This new factory project is already designed to effectively support further large-scale capacity expansion in the future.
“ We are confident that our business expansion plan will enable BR to grow strongly. We plan to expand into many large AEC Markets such as Indonesia, Vietnam and China with more than 1,600 million people. These countries have enjoyed improving quality of life and GDPs, therefore representing attractive markets for the Company. We also aim to expand our exports to Japan and other developed markets to increase our revenues and market shares in those countries. Our strengths are our internationally-accepted quality of both raw and cooked duck meat products. We are the first Thai exporter of duck meat to Japan, the UK, France and Hong Kong and continue to expand in these developed markets. In addition, the Company plans to expand domestic markets by penetrating into large regional cities nationwide such as Chiang Mai, Chiang Rai, Udorn Thani, Ubon Ratchathani, Kon Kaen, and Songkhla. We plan to support these additional demands by additional 50% capacity outputs from the new factory to be built with the IPO proceeds.” Khun Joseph adds.
Mr. Chayut Leehacharoenkul, the Group Chief Financial Officer, Bangkok Ranch Plc. (BR) says that the Company also plans to use the IPO Funds to rebalance the Company’s Capital structure. Therefore, after the IPO, the Company’s Debt-Equity Ratio (D/E) will improve significantly to a healthy 0.40 times from 1.5 times. This will not only reduce financial expenses but enable company to enjoy stronger working capital. It will also help improve the company’s profitability.”
Khun Veena Lertnimitr, Head of Capital Markets, Siam Commercial Bank, its Financial Advisor, says that SCB is honored to be the Financial Advisor for this important IPO project, after having helped the company to achieve a highly successful Management Buy-Out from Navis Capital in 2012. For this IPO Project, SCB Securities, its brokerage subsidiary and Bualuang Securities Plc. will act as Joint Lead Underwriters. With the Strong Business Fundamental as One of the World’s Top 10 Global Duck Meat Producers, the company is well-positioned to successfully expand its business both domestically and internationally. We are confident that BR IPO will receive strong positive welcome from both institutional and retail investors alike.
Khun Pichet Sithi-Amnuai , CEO of Bualuang Securities Plc., the Joint Lead Underwriter for BR’s IPO, says that Bangkok Ranch Pls. will offer a total of 360,400,000 IPO shares, consisting of 228,000,00 new shares and 132,400,000 existing shares. All IPO Shares will be offered at 8.80 baht per share with a 5-baht par value during the IPO Booking period from July 3 to July 8 (Half-day). The IPO will raise the fund of 2 billion baht for the company.”
“Of overall IPO Shares, 348,850,000 shares or 96.8% will be offered to institutional, retail investors and patronage investors. Remaining 3.2% or 11,550,000 shares will be offered to existing strategic shareholder groups, Management and Employees. The IPO shares can be booked at either Joint Lead Underwriters which are SCB Securities Co., Ltd. and Bualuang Securities Plc.. In addition, investors can also book shares at our Co-Managers, namely, Asia Plus Securities Plc., CIMBT Securities Plc. and Finansia Syrus Securities Plc from Friday-July 3rd to Wednesday- July 8th (Half-Day). ”
Bangkok Ranch Plc. (BR) is one of the Industry’s Pioneers and Major Providers for more than 30 years. It operates integrated operations from downstream to upstream operations; from Feed Mill to Parent Farm, Hatchery, Commercial Farm, Slaughterhouse and Food-processing Factory. With 2 large operations in Thailand and the Netherlands, it has annual capacity of 25 million ducks. Duck-To Holding B.V., its subsidiary, is the largest integrated duck meat company in the Netherlands, which is the 3rd largest Duck Exporting country in the EU. The Company exports to more than 20 major countries, especially in the EU such as Germany, UK, Netherlands and Japan.
In 2014, the Company had revenues of 8,484 million baht, a 12% increase from 7,573 million baht in 2013. Its Gross profit jumped 40% to 1,705 million baht in 2014, from 1,218 million baht in 2013. Its EBITDA also recorded a 55% increase to 1,385 million baht in 2014, from 891 million baht in 2013. Importantly, its Net profit jumped 416% to 661 million baht in 2014, from 128 million baht in 2013. It also has a higher profitability than the average profitability of listed food companies because it has competitive advantages in controlling production cost and has successfully expanded its export markets.