Triple i Logistics plans IPO later this year for expansion

Triple i Logistics Plc plans to offer shares to the public via the Stock Exchange of Thailand (SET) later this year to raise funds for working capital and business expansion.

According to a company filing submitted to the Securities and Exchange Commission (SEC), the logistics provider will offer a maximum of 164.5 million shares, representing 27.21% of total issued shares after the initial public offering (IPO).

The IPO shares will consist of two parts: not more than 160 million newly issued ordinary shares will be allocated to the general public and 4.5 million shares to the company’s employees at a par value of 0.50 baht apiece.

CIMB Thai Bank Plc is the company’s financial adviser. Triple i Logistics will be listed on the SET’s transport and logistics sector. There are 18 SET-listed companies in the sector.

According to the group’s chief executive Tipp Dalal, proceeds from the IPO will be used mainly to expand its inland business such as warehouse management.

It also plans to expand its air freight business, which includes an air cargo terminal, a new business the company has just started up at Don Mueang airport.

Triple i also intends to expand its sea freight business, including bulk cargo and chemical transportation vessels.

The company operates four businesses — air freight, sea freight and inland transport, logistics management, and chemical and speciality logistics.

In 2016, the company reported total revenue of 2.08 billion baht, up 34.6% from 1.53 billion baht in 2015 and 1.13 billion baht in 2014. It posted net profit of 94.5 million baht in 2016, up from 27.4 million in 2015 and 13.4 million baht in 2014.

Air freight contributed 68.4% of total revenue in 2016, following by chemical and speciality logistics making up 21.6%, logistics management 5.84%, sea freight and inland transport 3.95%, and the remainder from other businesses.

“We specialise in the air cargo segment. And we operate air cargo for Thai Air Asia and Thai Air Asia X,” said Mr Tipp. He said Triple i Logistics’ business continues to thrive.

The company also specialises in chemical and dangerous goods logistic services, a niche segment with high margins and few competitors.

The company claims to be the leader in hazardous chemicals based on the size of its warehouse with an area of nearly 20,000 square metres, while 90% of its customers are large multinational companies.