ThaiBev is planning to submit a listing of its brewing segment on the Singapore Stock Exchange as early as next week, a Bloomberg source said. This is likely to be the biggest IPO in Singapore in recent years.
According to Bloomberg sources, ThaiBev expects the company’s beer segment to be valued at around $ 10 billion. The official listing can take place as early as the second quarter of 2021.
According to the Financial Times, ThaiBev plans to reap about $ 2 billion from the IPO and Citi, Bank of America and Morgan Stanley will be the main advisors on the deal. All banks did not respond to a Financial Times request for comment.
In a statement sent on January 28, ThaiBev said the company is working with consultants on a listing plan. It is unlikely that the listing will take place and specific details have yet to be finalized, ThaiBev said.
Ms. Magaret Yang – Strategist at DailyFX commented: “The prospect of ThaiBev beer IPO can warm Singapore’s IPO market and investors seem to welcome this news.” After the news of the planned IPO, ThaiBev’s share price increased in both January 28 and January 29 sessions, recording its highest level since February 2020.
From the end of 2019, ThaiBev announced its IPO plan for beer segment but did not provide specific information on capitalization and listing location.
If successful, the ThaiBev deal could be Singapore’s biggest IPO since 2011 when Hutchison Port raised $ 5.5 billion. Last year, the value of shares sold for the first time in Singapore was only 915 billion USD, the lowest level since 2015.
Recently, Singapore has witnessed a series of delisting shares and is trying to build a diversified trading center for bonds, foreign currencies, commodities and derivatives. However, the lion island nation faces fierce competition from Hong Kong. Many Chinese technology companies after leaving Wall Street because of escalating US-China trade tensions have decided to return to list in Hong Kong.
ThaiBev is famous for its Chang beer brand of two elephants. In 2017, a ThaiBev unit acquired a majority stake in Sabeco – Vietnam’s largest beer company – for $ 4.8 billion.
Last quarter, Sabeco recorded net profit of parent company shareholders at 1,466 billion dong, up by 45% YoY. Profit for the whole year was 4,723 billion dong, down 7%.
In addition to beer, ThaiBev also produces a wide range of wines such as SangSom rum, Meridian brandy and Drummer whiskey. According to Bloomberg, ThaiBev owns 28% capital of Fraser & Neave – a Singapore company that produces 100Plus carbonated drinks and Magnolia dairy products.
ThaiBev’s owner is billionaire Charoen Sirivadhanabhakdi – Thailand’s richest man with a net worth of about $ 16.6 billion, according to the Bloomberg Billionaire Index. Forbes magazine estimates that he has a net worth of about $ 13.9 billion.