Buriram Sugar Makes SEC Filing to Issue 169,182,500 IPO Shares,
Appoints KT ZMICO Advisor for SET Listing
Buriram Sugar, the pioneer of sugar industry in the Northeast of Thailand, has submitted an application and other filings to the SEC to issue 169,182,500 IPO shares, before becoming a SET-listed firm and appointed KT ZMICO Securities as financial advisor.
Mr. Chaipatr Srivisarvacha, executive chairman of KT ZMICO Securities, the financial advisor, revealed the decision of Buriram Sugar Public Company Limited to make application and other filings to the Office of the Securities Exchange Commission (SEC) to enable it to make an initial public offering, or an IPO, of 169,182,500 capital-raise ordinary shares, which after the IPO will represent 25 per cent of the company’s distributed and paid-in ordinary shares.
Buriram Sugar’s current registered capital stands at THB 676,750,000, and its distributed and paid-in capital THB 507,567,500, represented by 507,567,500 shares with a par value of THB 1 each. It produces and sells raw sugar and brown sugar in Thailand and abroad, as well as utilizes byproducts of sugar production process, including bagasse and filter cake, to offer a comprehensive range of products through five subsidiaries, i.e. Buriram Sugar Factory Co., Ltd., Buriram Energy Co., Ltd., Key Brand Fertilizer Co., Ltd., Buriram Sugarcane Research and Development Co., Ltd. and Buriram Power Co., Ltd. Buriram Power is currently constructing its new co-generation plant.
He added that the capital raised by the IPO will be used to finance sugar production capacity expansion and biomass power plant projects and repay loans to reduce finance costs and allocated as working capital.
According to Mr. Anant Tantongwechakit, Buriram Sugar’s chief executive officer, his firm is the pioneer of sugar industry in Thailand’s Northeast, starting sugar industry in the region five decades ago. Its business now includes sugar production and distribution to both local and international markets and the utilization of byproducts for related industries, e.g. using bagasse as raw material for generating bio-electricity and filter cake is used to produce organic and organic-chemical fertilizers under the brand ‘Key Brand’.
The company has the policy to achieve continuous development and enhancement of the capacity of its sugar business. This 2013/14 season, we crushed 1.76 million ton of cane, and our crushing capacity is able to crush 14,000 tons of cane per day for sugar production and marketing both in Thailand and abroad. Bagasse – as byproducts from its sugar production process – can now be used as fuel for the producing of 9.9 MW bio-electricity and sell 8 MW to the Provincial Electricity Authority (PEA). Another co-generation plant which is currently being constructed has similar pattern. Filter cake left over from the sugar production process is used by our fertilizer plant under Key Brand Fertilizer Co., Ltd. as raw material for organic fertilizer with 30,000 tons annual capacity. The fertilizers are sold to our cane growers.
“We – the pioneer in the region’s sugar industry – have more than five decades of experience in sugar production and distribution in the Northeast. We have focused our efforts on development and improvement of a comprehensive range of production lines. Based on our underlying philosophy of ‘Sugar Made in the Field’, we strive to enhance cane growers’ potentials, we provide suitable cane varieties and fertilizers based on cane fields’ soil analysis. We also adopt advance sugarcane plantation management technology to improve cane yield.
Our long endeavors have finally contributed to an increased sugar yield from 105 kilograms per ton cane last season to 118 kilograms this season. The figure is among the most impressive in Thailand. Apart from technological advancement in production of sugar and related products, we believe that providing cane growers’ better life quality are the crucial factor for our adequate cane supply and our business sustainability in the end,” he noted.