BANGKOK, Oct 28 (Reuters) - Thailand’s largest industrial conglomerate Siam Cement Group Pcl plans the initial public offer (IPO) of its subsidiary, SCG Packaging, the company said in a statement to the stock exchange on Monday.
Proceeds of the of the capital increase will be used for domestic and international business expansion, Chief Executive Roongrote Rangsiyopas said, adding that the company will remain the major shareholder with 70% and offering 30% of total shares.
Reuters first reported that the subsidiary would be listed in a $1 billion IPO earlier on Monday.
The listing would allow SCG Packaging to fund mobilization channels and increase its capacity and pursue business expansion in the long-term through organic and inorganic investments.
Earlier this year the company acquired Indonesian paper firm, Fajar, for $665 million.
SCG, which did not disclose the size and timing of the offering, says there potential growth in the packaging business in Southeast Asia where the consumption rate and purchasing power for consumer goods, food & beverage, and e-commerce are rising.
The offering plans comes as Thailand’s IPO market heats up after Asset World Corp Pcl raised $1.57 billion earlier this month.
Reporting by Chayut Setboonsarng, editing by Louise Heavens