SNNP announces IPO to fund new factory, pay debt

Srinanaporn Marketing Plc (SNNP), the manufacturer and distributor of soft drinks and snacks, announced its initial public offering (IPO) yesterday at a price of 9.20 baht per share with the subscription period set for today until Friday.

Chayut Leehacharoenkul, the company’s chief financial officer, said the company’s debut on the Stock Exchange of Thailand is scheduled for the third week of July.

SNNP plans to sell 240 million shares through the IPO, which will be allocated to retail investors, institutional investors and company employees.

The subscription period for institutional investors is set for July 12-14.

SCB Securities serves as the lead underwriter for the IPO along with five other co-underwriters: Maybank Kim Eng Securities, Country Group Securities, Yuanta Securities, Krungsri Securities and KTBST Securities.

The company’s shares are slated to list in the agro and food industry and food and beverage sector under the SNNP symbol.

Viwat Kraipisitkul, the company’s chief executive, said proceeds from the IPO will be used: to invest in its subsidiary S.T. Food Marketing Co, a manufacturer and distributor of snack and beverage products in Vietnam; to pay back debt to financial institutions; and as working capital.

S.T. Food Marketing Co is constructing a factory for snacks and beverages in Vietnam and the first phase of operation is scheduled to start in the middle of next year. The second phase is slated for 2023. After the completion of its factory in Vietnam, SNNP will have a total of six production bases for snacks and beverages under its group.

Of the total, four facilities are in Thailand, with one each in Cambodia and Vietnam.

Thakorn Chaisathaporn, the company’s senior executive vicepresident for business, division II, said the expansion is needed in Vietnam because people there have higher incomes and the middle class is growing.

“With our products receiving good feedback in the Vietnamese market, a strong distribution network that covers Cambodia, Laos, Myanmar and Vietnam, in addition to our new production base, our competitiveness should increase,” Mr Viwat said.

“We aim to become Asean’s leading beverage and snack company.”

He said the factory in Vietnam will produce snacks and beverages for the Vietnamese market.