Taokaenoi plans SET listing in mid-2013
Taokaenoi Food & Marketing Co, the producer and marketer of Taokaenoi processed seaweed snacks, aims to trade on the Stock Exchange of Thailand by the middle of next year after its listing plan was washed out by the flood late last year.
The firm expects to use the Bt600 million to Bt700 million in proceeds from its initial public offering for production expansion to serve the regional market after the establishment of the Asean Economic Community (AEC) in 2015.
The fresh capital will also fund new production lines to strengthen its operations.
Asia Plus will be its financial adviser.
Its registered capital will be increased from Bt200 million to not more than Bt300 million before the listing. Its shares have a par value of Bt10 apiece, while its market capitalisation is more than Bt2 billion.
Chief executive officer Itthipat Peeradechapan said yesterday that the previous plan was to list the company on the Market for Alternative Investment, but was changed to the SET as the big board is the focus of investors more than the MAI.
The firm plans to play a key role in the AEC market. Its sales should double to Bt5 billion over five years from Bt2.5 billion expected this year. Last year its sales were Bt2 billion.
Its processing capacity for seaweed will also double in 2015 from the average of 3 million tonnes annually.
More warehouses will be built to distribute its products even more widely. Kamphaeng Phet and Lamphun in the North and Surat Thani and Ranong in the South are among the possible locations for the new storage facilities.
The firm has no plan to set up a plant elsewhere in the AEC because of the detailed operations and selective raw materials required. Seaweed especially must be stored in the proper climate.
The AEC market, particularly Indonesia, Vietnam and Myanmar, holds big potential for Taokaenoi’s products. The Taokaenoi brand is known regionally because the products are stocked in stores in those countries.
However, the government could help the business enter the AEC market more smoothly, especially in neighbouring nations, Itthipat said. For example, product speculation and substance supervision in products are among the trade barriers to be introduced.
Taokaenoi products are sold in 27 nations, while the domestic market takes up to 60 per cent of its sales, he added.
