Thailand: Thai Beverage applies for listing on the Stock Exchange of Thailand
The executives of Thai Beverage, have said that listing the company on the stock market is essential for the company's future growth, given growing competition in the local market, Bangkog Post announced on October 26.
Kasemsant Weerakun, the spokesman of the company said the company hoped to use funds raised from its initial public offering to finance the construction of new breweries abroad to support Chang brand's growth in the world beer market.
''While Thai Beverage is quite big locally, from an international perspective we are quite small. If we cannot list on the Stock Exchange of Thailand, we will lose business opportunities,'' he said.
''Every country is expanding its international presence in response to growing competition and market liberalisation. Thai companies must do the same.''
The Thai brewer is a holding company with interests in 63 companies, 20,000 employees and 2004 profits of 10 billion baht on sales of 90 billion. In addition to market leader Chang Beer, the group, controlled by billionaire Charoen Sirivadhanabhakdi, also produces Mekhong rum, whiskies and other spirits. Thai Beverage IPO has been highly anticipated by the market, and stands to be the largest private company listing in SET history.
But the Securities and Exchange Commission has yet to formally approve the company's listing in the face of vocal public opposition from religious and social groups. Opponents, led by former Bangkok governor Chamlong Srimuang, vow to block the company's listing on moral grounds, saying that allowing the firm to enter the SET was akin to state support for the alcohol industry and would encourage alcohol consumption.
Mr Kasemsant stated Thai Beverage was open to different opinions.''We accept that everyone has different ideas. Thailand is a democracy, after all. We are willing to hold talks with all parties so that we can reach a greater understanding,'' he said. According to him SET listing was crucial for Thai Beverage's future, and challenged assumptions that allowing alcohol producers to list would result in greater consumption by the public.
Mr Kasemsant cited studies by the World Health Organisation showing that alcohol consumption in Germany, the US and France was in decline, even though all three countries allow stock listings by alcoholic beverage producers.Thai Beverage is now in talks with a number of European and Asian partners about establishing new breweries and plants abroad, with a war chest of 18 billion baht in cash to fund expansion.
Overseas plants were crucial to boosting foreign sales, Mr Kasemsant said, noting that it took as long as two months to reach some markets from its local brewery in Kamphaeng Phet.
''A Thai Beverage listing would benefit both Thai society and the economy. This company pays annual taxes of 50 billion baht per year, accounting for 5% of the government's budget,'' he said.
''It is a vision of Charoen Sirivadhanabhakdi to list on the Thai stock market for the country's benefit.''
Mr Kasemsant added also that while Thai Beverage was approached by other stock markets to list abroad, the brewer had no plans to do so if its SET application was refused.
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