Wow, This Thai Beer Company 'Chang' Wants To IPO In Singapore Targeting IDR 140 Trillion!

JAKARTA - A beer producer company, Thai Beverage Public Company Limited (ThaiBev) is planning to conduct an initial public offering (IPO) on the Singapore Exchange (SGX). From this IPO, the Chang-branded beer producer is expected to reap US $ 10 billion or around Rp140 trillion.

Quoted from Bloomberg, Friday, February 5, ThaiBev announced that it received a letter of no objection from Singapore Exchange Securities Trading regarding the listing of shares in SGX.

ThaiBev will sell around 20 percent of its subsidiary in the beer business line, namely BeerCo Ltd, with a target of raising funds of 10 billion US dollars or equivalent to IDR 140 trillion. If realized, the IPO will be the largest public offering on the Singapore Exchange in the last decade.

Previously, the largest IPO on the Singapore Stock Exchange was recorded by the Hutchison Port Holding Trust at US $ 5.5 billion in 2011. Directly, the BeerCo Ltd IPO will also increase the volume of public offerings in Singapore which set a record low since 2015 amounting to US $ 915 million.

The announcement of the IPO of BeerCo Ltd will encourage ThaiBev shares which are already listed on the Singapore Exchange.

"This will be a positive catalyst for ThaiBev shares as they are the second largest beer producer in Thailand and the largest in Vietnam," said Nirgunan Tiruchelvam, Head of Equity Research at Tellimer.

To note, the beer producer with the characteristic green glass bottle with an elephant image is owned by the Thai conglomerate, Charoen Sirivadhanabhakdi. From Bloomberg Billionaires Index data, Charoen is the richest person in Thailand with a net worth of around 16.3 billion US dollars.

ThaiBev was first introduced to the public on October 29, 2003. The company generated revenues of nearly S $ 4.7 billion or equivalent to Rp.49 trillion in the fiscal year ended September 30. ThaiBev also made a profit of 348 million Singapore dollars or around Rp3.65 trillion.

In addition to the brewing business, ThaiBev operates distilleries for the production of other label liquor, including SangSom rum, Meridian brandy and Drummer whiskey.