Shares of Sri Trang Gloves Thailand surge 75% at debut

Sri Trang Agro-industry PCL

02/07/2020 05:00

BANGKOK, July 2 (Reuters) - Shares of Sri Trang Gloves
Thailand (STGT)  STGT.BK  began trading on Thursday at more than
75% above their initial public offer (IPO) price in the
country’s first listing since the coronavirus pandemic
escalated.
    The company, the world’s third largest rubber glove producer
after Malaysian firms, Top Glove and Hartalega, plans to use
14.6 billion baht ($470.36 million) from the funds raised to
expand production and repay debt, it said in a filing.
    It shares reached 60 baht after markets opened, up from the
IPO price of 34 baht.  urn:newsml:reuters.com:*:nL4N2DZ2SV
    "STGT's story and timing is unique because this company
benefits from the pandemic directly, unlike Central Retail,"
said M Corp Review analyst, Athaporn Arayasantiparb.
    The listing is Thailand's third this year after top retailer
Central Retail Corporation Pcl  CRC.BK  and Yggdrazil Group Pcl
 YGGm.BK . February's IPO by Central Retail Corp was Thailand’s
largest.  urn:newsml:reuters.com:*:nL4N2AK1F5 urn:newsml:reuters.com:*:nL4N2AK1F5
    STGT booked revenue of 3.87 billion baht for the three
months ending in March, versus 3 billion from the corresponding
period last year, fuelled by rising global demand for latex
gloves to fight the pandemic, as well as lower rubber prices.
    Net profit in the first quarter rose 184% to 421.89 million
baht. STGT has a dividend policy of at least 30% of net profits.
    Risk factors included competition from other manufacturers
and fluctuations in the price of raw materials, it said.
    "Regardless of whether the pandemic dissipates or recurs, it
is impossible for them to maintain their momentum in the long
run," Athaporn said, adding that other producers would rush to
fill the supply gap. 
($1=31.0400 baht)

 (Reporting by Chayut Setboonsarng; Editing by Clarence
Fernandez)
 ((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))