Thailand’s leading lubricant producer, PSP Specialties Plc, is making ready for an preliminary public offering (IPO) to boost its business progress. The firm plans to offer 350 million shares, approximately 25% of its total shares, on the Stock Exchange of Thailand. Piece of cake per share is but to be decided, with a roadshow within the works to promote the company.
CGS CIMB Securities (Thailand) is handling the underwriting process for the itemizing. The CEO of PSP Specialties, Sint Krongphanich, acknowledged that a half of the funds raised by way of the PSP Specialties IPO can be used to repay debt incurred following the acquisition of UC Marketing Co, a distributor and seller of raw materials and items. Additionally, funds shall be allocated to short-term debt payments and enhancing the company’s production efficiency.
PSP Specialties’ IPO remaining budget will serve as working capital. The company’s annual production capacity consists of 212 million litres of lubricant, 27,500 tonnes of grease, 44 million litres of rubber process oil, and 25 million litres of transformer oil. Located in Samut Sakhon province near the Tha Chin River, PSP Specialties also operates a manufacturing facility within the Thilawa Special Economic Zone on the outskirts of Myanmar’s capital, Yangon.
According to Marked down IPO, more than 95% of its revenue stems from producing and selling raw materials like lube oil and grease. The remaining 5% is generated from creating lube oil products and providing logistics companies. In the previous year, the company noted a 22% revenue improve, reaching thirteen.2 billion baht from 10.7 billion baht in 2021 and 6.9 billion baht in 2020. The first quarter of this yr noticed an additional 0.4% improve in revenue, amounting to three.08 billion baht, reviews Bangkok Post.
Sint Krongphanich talked about that the corporate goals to focus on lube oil solution providers and preserve its position as an original gear producer. Rather than creating a new brand to market lube oil, PSP Specialties wants to keep away from competing with its current customers..