TFM targets opportunities, sets IPO price
Thai Union Feedmill (TFM), a producer and distributor of integrated aquaculture feed and economic animal feed products, looks set to pursue business opportunities not only at home but also in countries with high growth potential in the aquaculture feed industry.
According to Bunluesak Sorajjakit, the company’s chief executive, the business opportunities include exports to countries such as Myanmar, Malaysia and Sri Lanka through a partnership with Avanti, a leading Indian aquaculture feed producer, using TFM’s trade name and production formulae for products sold in India. The company is also looking for joint ventures with trading allies by setting up subsidiaries in Indonesia and Pakistan.
TFM currently has two production bases, one in Mahachai in Samut Sakhon’s Muang district, and the other in Songkhla’s Ranot district. These are locations of high potential for aquatic feed production as the central and southern regions are the country’s most important areas for breeding and raising aquatic animals. The two bases have a combined production capacity of 273,000 tonnes per year (as of June 30 this year), comprising 153,000 tonnes per year for shrimp feed, 90,000 tonnes per year for fish feed, and 30,000 tonnes per year for terrestrial animal feed.
In 2020, TFM revenue tallied 4.24 billion baht, 97% of which was from domestic sales with 3% generated by exports to countries such as Sri Lanka, Bangladesh and Myanmar.
The company’s main revenues are from shrimp feed, accounting for 50%, fish feed at 40%, land animal feed at 7%, and export revenue at 3%.
TFM yesterday announced its initial public offering share price at 13.50 baht per share, with the subscription period set between from today until Oct 21. Trading is set to begin on the Stock Exchange of Thailand (SET) within October under the symbol “TFM”.
It has appointed Bualuang Securities as the primary underwriter for the IPO, with Kasikorn Securities, SCB Securities, and Finansia Syrus Securities as co-underwriters.
TFM has offered 109.3 million shares for the IPO, comprising 90 million new shares and 19.3 million existing shares held by SETlisted Thai Union Group (TU), a global seafood company.