Thai meat producer Betagro shares slide 9% on debut (updated)

Fiera Capital

02/11/2022 04:01

(Updates with headline and share price movement in 1st and 2nd
paragraphs)
       BANGKOK, Nov 2 (Reuters) - Shares in Thai meat producer
Betagro Pcl  BTG.BK  closed 9% below their offer price on their
first trading day on Wednesday, marking a weak start for the
country's second-largest listing this year amid concerns over
food prices. 
    The drop came as the benchmark index  .SETI  fell 0.04%. 
    The initial public offering (IPO) is Thailand's
second-biggest listing of 2022 after Thai Life Insurance's $1
billion listing in July.
    Betagro, which produces meat and pet food, in October said
it would sell up to 25% of shares, raising at least 17.4 billion
baht ($462.52 million).
    Cornerstone investors made up 42% of its base offering,
including domestic funds Krungsri Asset Management and TISCO
Asset Management, according to a term sheet. 
    Foreign investors include Fiera Capital and Eurizon Capital.
    Some analysts linked part of the share decline to concern
over potential government action on food prices. 
    "There is uncertainty on whether the government will take
action on high pork prices," said M Corp Review analyst Athaporn
Arayasantiparb.
    Other risks included increasing wheat prices, which are used
in pork feed production, he added.
    The IPO's bookrunners were BofA Securities, Bualuang
Securities, and Phatra.  
    ($1 = 37.6200 baht)
 (Reporting by Chayut Setboonsarng
Editing by Ed Davies and Mark Potter)
 ((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))