It is understood that Sri Trang glows (STGT), a Thai rubber glove manufacturer, said in a document on Monday that the company plans to raise 14.9 billion baht ($480.34 million) in an initial public offering (IPO), which is Thailand during the outbreak. The biggest IPO.
The rubber glove manufacturer is a subsidiary of Sri Trang Agro Industry, the country’s largest natural rubber producer. In the three months to March, the company achieved revenues of 3.79 billion baht, an increase from 2.98 billion baht in the same period last year. 25%. The main reason for the increase was the sales of rubber gloves reached 6.2 billion pieces, an increase of 28.7% over the same period last year, and the new production lines and factories in southern Thailand.
The company said that part of the increase in sales was due to the pandemic. In addition, due to the drop in oil prices, the company's gross profit in the first quarter of this year increased by 79.7% to 706.6 million baht, almost doubled.
The funds raised by the company will be used to expand production capacity and repay debt. The initial public offering period will be between June 23 and 25. It plans to sell 473.8 million shares at a price of 34 baht per share. The first trading day is set for July 2. After the sale of the shares, the shareholding of its parent company Sri Trang Agro Industry will be reduced from 73% to 50.7%.
Sri Trang Gloves' factory in Thailand has an annual production capacity of 32.6 billion gloves, and the goal is to reach 100 billion gloves by 2032.
Thailand is the world's largest producer of natural rubber, including latex, and has been planning to increase domestic natural rubber consumption for many years to boost rubber prices. Thailand is expected to export 3.7 million tons of rubber this year, down 5% from 2019. Thailand chose to use rubber as a raw material for roads and guide posts to increase domestic consumption, but it will take a long time for the rubber industry to recover.