Palm oil /Smothong Group

Editorial staff

Smothong Group Plc (SMO) seeks to raise funds to enhance its production capabilities in the crude palm oil industry.

Smothong Group strategic objectives encompass expanding its factory, optimizing production processes, and solidifying its position as a leading player in the Thai crude palm oil market. The company’s vision extends to both domestic and international sales channels.

Somsak Sirichainarumitr chief executive officer of Asset Pro Management Co (APM), a financial advisor to SMO, has disclosed that APM has submitted a statement of securities offering and drafted the initial prospectus to the SET. The IPO offers ordinary shares for the first time to the general public, with a par value of 1.00 baht per share. This offering represents 25.17% of the total number of ordinary shares sold by the company after the initial offering. SMO Group’s shares will be listed on the SET.

Suriya Thamtera, APM’s senior executive vice president, provided an overview of the business operations of SMO and its subsidiaries. SMO, a major company with a registered capital of 920.00 million baht, has a paid-up capital of 688.40 million baht. Three other subsidiaries are involved in the business:

1. Mitprasong Green Power Co owns 99.99% of the shares and engages in the production and distribution of electricity derived from biogas fuel.

2. AL Palm Co holds a stake of 99.99% and operates in the production and distribution of crude palm oil and related products, as well as the production and distribution of electricity generated from biogas fuel.

3. Team Evolution Co holds 49.44% of the shares.

Currently, the group does not have any active business operations.

Kittipong Puangmala, SMO’s chief executive officer

Kittipong Puangmala, SMO’s chief executive officer, unveiled the company’s origins. Founded by an experienced raw material purchaser, SMO acquired machinery and technology for constructing palm oil extraction plants. Within 15 years of its inception, the company continuously developed its operational potential, leading to rapid and steady expansion. SMO’s strong growth propelled it to become one of the country’s leading palm oil operators.

With a total capacity of 240 tons of fresh palm fruits per hour, SMO distributes its products across four areas:

1. Tha Chana branch factory in Tha Chana district, Surat Thani
2. Phanom branch factory in Phanom district, Surat Thani
3. Saraburi branch factory in Nong Khae district, Saraburi
4. AL Palm Co (subsidiary) factory in Thung Tako district, Chumphon, strategically located to supply the country’s crucial fresh palm supply.

SMO stands as one of the country’s top crude palm oil producers, playing a pivotal role in driving Thailand’s palm oil industry. Its contributions extend beyond the direct production of palm oil, fostering food security both directly and indirectly.
Furthermore, SMO’s business ventures in electricity production from biogas fuels are noteworthy. With a total power capacity of 14.38 megawatts under the Electricity Purchase Agreement (PPA), SMO contributes 12.7 megawatts to building energy security for the nation.

The company’s strategic approach is pivotal in its ability to compete in the industry and foster sustainable growth. This strategy encompasses several key elements. Firstly, the location of the factory is strategically situated near the primary source of raw materials and a major road, facilitating efficient product distribution both domestically and internationally. Secondly, the company’s participation in the Roundtable for Sustainable Palm Oil Production (RSPO) underscores its commitment to promoting sustainable palm oil practices.

In addition to these initiatives, the company’s objective is to raise funds for increased investment in its crude palm oil production and distribution business. This expansion aims to enhance competitiveness within the industry and explore opportunities for investment in related businesses within the same supply chain. The primary focus is on expanding the company’s main product and improving production processes to enhance environmental management efficiency. To achieve this, the company seeks to secure loans from financial institutions and utilize working capital within its operations.