Stock Market / Betagro

Editorial Team

Betagro (BTG) debuts on SET to follow IPO success that amasses fund to drive growth

Betagro PCL (BTG), Thailand's leading international food company with over 55 years of history, debuts on the Stock Exchange of Thailand (SET) today with a total offering value of 20 billion baht and a securities value at an IPO price of about 80billion baht.

BTG has stood out as the highest-value initial public offering (IPO) stocks in the agriculture and food industry on the Thai capital market, while recording the highest selling value in South East Asia so far this year.

BTG has readied to continue its success with a strategy to build growth by means of investing in value chains both at home and abroad. The company will seek opportunities to invest in new businesses under the new s-curve model to create continuous and sustainable growth in the future.

Mr Vasit Taepaisitphongse, chief executive officer and president of Betagro Plc

Mr Vasit Taepaisitphongse, chief executive officer and president of BTG, said that the IPO, at 40 baht a piece, has been well received by leading local and international institutional investors as well as individual investors in Thailand amid highly volatile economic and investment conditions.

The move reflects vividly the confidence in the robust business fundamentals and the potential for continuous and sustainable growth of BTG as world-class branded food firm.

"The company is outstanding from other listed companies in the same industry with an integrated business model extending from upstream to downstream. The company owns quality and diversified brands that are widely recognized and trusted by consumers more than 20 countries around the world.”

BTG sets its sight on upgrading the food industry, enhancing long-term competitiveness through its five-year investment (2022-2026) to boost the market share domestically and internationally.

The company plans to boost its production capacity of animal feed to 5.5 million tonnes per year; ramping up processed food and sausages output to 223,000tonnes per year; setting up swine processing plants capable of dealing with 4.8 million pigs and broiler processing plants capable of handling 270 million chicken.

The company also focuses on food products with high added value such as ready-to-cook and ready-to-eat foods as well as increasing the proportion of premium and standard-branded products, and expanding the company's business overseas with plans to invest in the establishment of factories and farms to increase production capacity in Cambodia, Laos and Myanmar.

Betagro is also looking for new new s-curve growth opportunities by earmarking 900 million baht in capital during 2022 and 2026 for new businesses through the venture building and venture capital methods in three branches:

Mr Vasit said the 20 billion baht fund raised from the flotation of 500 million shares inclusive of full over-allotments in the IPO process is specifically meant for:
(1) investment for acquisition and/or construction of new farms and plants in the amount of about eight billion baht
(2) Capital restructuring through payment of short-term and/or long-term liabilities to financial institutions in an amount of 8.96- 10.5 billion baht
(3) Using as working capital in an amount of not more than 1,021 million baht