Tao Kae Noi Plans IPO to fuel Ambitious Asia Expansion Plan Building New factory for Export with 2014 Net Profits grow 55%
Tao Kae Noi Plans to expand internationally as Export Sales explodes. Company controls domestic leadership with 62% Market Shares.
Itthipat Peeradechapan, Chief Executive Officer, Tao Kae Noi Food & Marketing Plc. (TKN) reveals that Company aims to become Asia’s No. 1 Seaweed Snack Leader after dominating that market in Thailand for a long time. TKN plans to offer 90 million IPO shares to fund new Factory Investment in Rojana Industrial Park, Acquiring new Cutting-edge Technology Machine and expand working capital. These efforts will support export expansion plan.
”Tao Kae Noi is a Pioneer and No.1 Market Leader in manufacuring and distributing Seaweed Snack with 62% market shares. The main products are fried seaweed, tempura-flavored seaweed, baked seaweed and grilled seaweed. The company also exports to 35 countries around the world, ensuring Strong and Sustainable Business Growth. In 2014, TKN has revenues of 2,726 Million baht with 199 Million Baht Net Profit, achieving a 55% Growth in Net Profit, from 2013, which had Revenues of 2,721 Million Baht and 128 Million Baht. In 2012, TKN had Revenues of 2,542 Million Baht with 105 Million Baht Net Profits.
Latest, in First Quarter, this year, TKN has 702 Million Baht revenues with 51 Million Baht Net Profit, recording a High 71% Net Profit Growth over same period last year that had 578 Million Baht Revenues and 30 Million Baht Net Profits.
TKN has set Company’s Vision and Goal to Become Asian Brand Leader in Snack Market with Revenues of 5,000 Million Baht in 2018. Currently, its Export Revenues has grown continuously, now accounting for 43.05% of Total Sales, up from 31.65% in 2012, as Company increased Export Volumes to key markets such as China, Indonesia and Malaysia. Therefore, Export Sales has grown at higher rate than domestic sales. China is one of highest potential market as it is the world’s largest snack market by market value. Therefore, TKN has decided to invest in building additional factory dedicated for export and has receieved won a Ta-free Priveleges from the Board of Investment for 7 years. As a result, TKN will also double its production capacity. In addition, TKN has marketed new Pop Corn Products under ‘Tobcorn’ and ‘Tao Kae Pop’. Company has plan to develop new and innovative products to satisfy consumers’ demands.” Khun Itthipat adds
Mr. Lec Sicoravit, President of Asia Plus Advisory Co., Ltd., its Financial Advisor, says that Tao Kae Noi Food and Marketing Plc. is an IPO Stock that we are very proud of. TKN is both a Pioneer and Market Leader in Seaweed Snack with 62% Market Shares and has Large Potential in International Markets. Importantly, under Khun Itthipat ‘s Leadership and his Capable Management Team, the company has gained strong recognition in building Strong & Continuous Business Growth. In Addition, Tao Kae Noi also has High Brand Value and enjoy Strong Brand Awareness in Asian and Thai Markets, which will enable company to grow much further.
This IPO offering are aimed to fund new factory building to produce Company’s Products for exports purpose, increase working capital and strengthen its financial condition. As of end or 2014, TKN has an Earnings per share of 1.19 Baht and Return on Equities of 65% and Return on Assets of 17%, with a Debt to Equities Ratio of 2.62 Times. We expect strong feedback from the investors.
As of June 30, 2015, Tao Kae Noi Food & Marketing Plc. has a registered capital of 345,000,000 Baht with a par value of 1 Baht. It has paid capital of 255,000,000 Baht and after the IPO of 90,000,000 Shares to public investors, it will increase registered paid capital to 345,000,000 baht, with 1-baht par value. The Peeradechanpan Group will continue to be Major Shareholder but will reduce its shareholding from 100% during Pre-IPO to 74% or hold 255,000,000 shares after the IPO., with the Public Investors hold 26% Share. This IPO will be managed by Asia Plus Securities Co., Ltd., as a Lead Underwriter and Manager.