Public debut for DOD counters sell-off trend
Share prices climbed 58.1% on first day
MAI-listed DOD Biotech Plc, a dietary supplement and cosmetics manufacturer, yesterday began its first trading day on a high note as share prices climbed by almost 60% above the IPO price.
DOD shares closed at 14.70 baht, up 5.40 baht or 58.1%, in trade worth 3.9 billion baht.
The company has paid-up registered capital of 205 million baht, with a par value of 0.50 baht per share. The IPO price was 9.30 baht per share, with total fundraising tallying 1.02 billion baht. Advisory Plus is the company’s financial adviser and KT Zmico Securities is the lead underwriter.
The brisk trading bucked the recent heavy sell-off in local stocks amid the USChina trade row, volatile crude oil prices, and the US Federal Reserve’s interest rate normalisation.
DOD’s rising share price counters the trend of the dietary supplement industry, which has been hit by negative news recently. For instance, Magic Skin was found to be producing substandard and unlicensed cosmetics and food supplements, while Lyn offers weight-loss drugs that have been linked to four deaths.
Officials have embarked on a nationwide crackdown on cosmetics and supplement factories to put an end to the sale of dangerous and illegal goods.
DOD managing director Supamas Isarabhakdi said the supplement industry’s bad press could be an opportunity for the company to grow its business as DOD has a licence from the Food and Drug Administration as well as other standard certificates guaranteeing safety and clean production.
Many customers are asking the company to produce dietary supplement products and cosmetics, said Ms Supamas. Customers will then market these products under their own brands, with DOD earning revenue from production fees.
“The welcome investment in DOD shares reflects investors’ interest in the business and their confidence in the company’s fundamentals, as well as its potential for strong future growth,” she said.
Ms Supamas said DOD is a leading original design manufacturer of dietary supplements where the main components come from natural extracts.
The company also emphasises R&D for its products as it believes research will help drive the business towards sustainable growth, she said.
DOD plans to keep its gross profit margin at 50% in the future and aims to grow through mergers and acquisitions or joint ventures in related businesses, also leading to international expansion, said Ms Supamas.
The company’s production capacity stands at around 1.5 million boxes per month.
Proceeds from the fundraising process will be used for investment in raw material extraction plants used for supplement and cosmetics manufacturing. Funds will also be used to develop DOD’s new brands, repay financial institutions, and as working capital.
Separately, the Stock Exchange of Thailand (SET) index rebounded yesterday after experiencing a heavy sell-off for two days.
The SET closed at 1,664.26 points, up 1.51%, in trade worth 60 billion baht.
Foreign investors continued to be net sellers of 3.63 billion baht, with brokerage firms selling 1.2 billion worth of shares. Institutional and retail investors were net buyers of 2.43 billion and 2.4 billion baht, respectively.