I-Tail Corp. Up 5.5% After Thai Post IPOs
Bloomberg I-Tail Corp. Pcl. Thailand's top pet food maker, climbed in its trading debut after the country's second largest initial public offering this year.
Before a change to 32.25 baht, the Bangkok-based company's shares rose by as much as 5.5% to trade at 33.75 baht, the company's shares went up as of 10: 02 a.m. in Bangkok. Thai Union Group Pcl, the Thai Union Group Pcl's frozen and seafood products company, raised 21.1 billion baht $606 million after selling 660 million shares at 32 baht each, the top of a marketed range. It is the largest debut in Bangkok since Thai Life Insurance Pcl. The offering marked the beginning of a year of some resilience for Thailand's IPO market, as improving sentiment toward local equities and the participation of local investors saw the execution of several deals even as they vanished in traditional venues. In Southeast Asia, around $3.2 billion was raised in proceeds this year, a 20% decline in the country, compared to a 44% plunge in Southeast Asia and a 70% decline in Hong Kong.
According to its website, the company s line of products includes mini-pouch tuna flakes and vitamin drinks for cats and dogs. I-Tail hopes to use part of the proceeds for business expansion and debt repayment. The company posted net income of 3.8 billion baht, a 170% jump compared to the same period last year in the first nine months of the year.
About 60% of the companies listed in Bangkok in the past five years after IPOs of over $100 million finished their first session at a higher price than what they listed, according to data compiled by Bloomberg. Other large-size IPOs lined up in the Southeast's second-largest economy include SCG Chemicals Pcl, and retailers CP Express Group Co. and Big C Supercenter Pcl.
The global pet food market will continue its growth momentum as pet owners are willing to pay a premium price for more functional and nutritious food, the company said yesterday.
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