Stock trading/mai

Editorial staff

Market for Alternative Investment (mai) will list PMC Label Materials Plc, a manufacturer and distributor of blank stickers or self-adhesive labels for domestic and international customers, on September 11 under the symbol "PMC".

The company has a market capitalization at its initial public offering (IPO) of 702 million baht (approx. USD 20.76 million).

mai president Prapan Charoenprawatt said PMC will start trading on mai in the industrials industry group.

PMC, a subsidiary of SELIC Corp Plc (SELIC), manufactures and distributes sticker products or adhesive labels, which are upstream products comprising three main groups: paper stickers, film stickers, and specialty stickers. The company’s main customers are in the label printing (printers) and label manufacturing (converters) businesses.

The company’s domestic to international market sales ratio stands at 65:35, with exports to over 15 countries worldwide. PMC operates one manufacturing plant on a 13-rai area in the Packaging and Printing Industrial Estate, Samut Sakhon province, with a sticker production capacity of 75 million square meters per year.

In the first half of 2024, paper stickers, film stickers, and specialty stickers contributed 62 %, 26% and 12%, respectively to PMC’s total revenue. According to the company’s revenue breakdown by industries using its products, retail and personal care accounted for 64 %, food and beverage 13%, logistics 8%, and others 15%.

PMC's post-IPO paid-up capital amounts to 385.72 million baht, consisting of 270 million existing ordinary shares and 115.715 million newly issued ordinary shares, with a par value of 1 baht each.

Of the total IPO shares, 34.715 million newly issued shares were allocated to eligible SELIC shareholders between August 29-30 and September 2, 2024, 71 million newly issued shares to investors at the underwriters' discretion, and 10 million shares to the company's patrons during September 3-5, 2024.

The IPO share was priced at 1.82 baht per share, raising 210.60 million baht in capital. The IPO price was equivalent to the price-to-earnings (P/E) ratio of 17.40 times. The earnings per share is equal to 0.1046 baht which was calculated from the company’s net profit over the past 12 months (from July 1, 2023, to June 30, 2024) divided by fully diluted shares. KGI Securities (Thailand) pcl served as the financial advisor and lead underwriter.

PMC chief executive officer Ek Suwatthanaphim said that the company aims to become a leader in the blank sticker manufacturing and distribution in the ASEAN region. PMC has invested 230 million baht to expand its sticker annual production capacity by 110 million square meters to 185 million square meters after the new production line is fully installed.

With the additional production capacity, PMC will emerge as Thailand’s third-largest label producer. The new production line is currently undergoing test runs and is expected to commence commercial operations in early first quarter of 2025.

The funds raised from the IPO will be used to 1) invest in the new production line and repay financial institution loans, and 2) invest in distribution center expansion in various ASEAN countries, such as Indonesia and Vietnam.

PMC’s largest shareholder after the IPO is SELIC (70 %). The company’s dividend policy is to pay shareholders not less than 40 % of net profit from its financial statements after taxes and legal reserves.