Tao Kae Noi plans IPO, aims to be Asia's
Tao Kae Noi Food and Marketing, the country's leading producer and distributor of seaweed snacks, plans to offer 90 million shares in an initial public offering in this half of the year to raise funds for business expansion in Asian markets and to build a
Chief executive officer Itthipat Peeradechapan said the company aimed to become Asia’s No 1 seaweed-snack provider after dominating that market in Thailand for a long time.
The company will raise capital to invest in a new plant in Rojana Industrial Park, acquiring new cutting-edge technology machine and expanding working capital. These efforts will support its export expansion plan.
Tao Kae Noi is a pioneer in the seaweed-snack market, of which it holds 62 per cent in Thailand. The main products are fried, tempura-flavoured, baked and grilled seaweed. The company also exports to 35 countries around the world.
Last year, the company reported revenue of Bt2.726 billion, up from Bt2.721 billion in 2013. Net profit last year was Bt199 million, up 55 per cent from the 2013 net of Bt128 million.
In the first quarter of this year, the company reported revenue of Bt702 million and net profit of Bt51 million, up 21 and 71 per cent respectively from first three months of last year.
Tao Kae Noi aims to be the leader of the seaweed-snack market in Asian by 2018, when it targets total revenue of Bt5 billion.
Its export revenue has been growing continuously, now accounting for 43.05 per cent of total sales, up from 31.65 per cent in 2012, as the company increased export volumes to key markets such as China, Indonesia and Malaysia. Therefore, export sales have grown at a higher rate than domestic sales.
China has high potential for the company’s future export growth, as it is the world’s largest snack market in terms of value.
Given such opportunities, the company has decided to build an additional plant dedicated for export, and has won tax-free privileges from the Board of Investment for seven years. As a result, the company will also double its production capacity.
In addition, Tao Kae Noi has marketed new popcorn products under the Tobcorn and Tao Kae Pop brands. The company plans to develop new and innovative products to satisfy consumers’ demands, Itthipat said.
As of June 30, Tao Kae Noi Food and Marketing had registered capital of Bt345 million with a par value of Bt1. It has paid-up capital of Bt255 million, and after the IPO of 90 million shares to public investors, it will increase registered paid-up capital to Bt345 million, with Bt1 par value.
The Peeradechanpan Group will continue to be the major shareholder but will reduce its shareholding from 100 per cent to 74 per cent after the IPO.
The IPO will be managed by Asia Plus Securities Co as a lead underwriter and manager.
