Thai rubber glove maker Sri Trang plans IPO to raise $480 mln (updated)

Sri Trang Agro-industry PCL

22/06/2020 13:06

(Adds context, detail, first trading day)
    BANGKOK, June 22 (Reuters) - Sri Trang Gloves Thailand
(STGT) plans to raise 14.9 billion baht ($480.34 million) in an
initial public offering (IPO), it said in a filing on Monday in
the country's biggest IPO amid the coronavirus outbreak. 
    The rubber glove maker, a subsidiary of the country's
biggest natural rubber producer Sri Trang Agro Industry Pcl
 STA.BK , booked revenue of 3.79 billion baht in the three
months ending in March, up 25% from 2.98 billion baht a year
ago, according to the filing. 
    The increase was driven by rubber glove sales of 6.2 billion
pieces, up 28.7% from the same period a year ago, and new
production lines and factories in southern Thailand. 
    The company said sales had increased partly due to the
COVID-19 pandemic.
    Gross profit nearly doubled in the first quarter this year,
jumping 79.7% to 706.6 million baht, also helped by lower oil
prices.
    The IPO period will be between June 23-25 and the company
plans to sell 438.78 million shares, priced at 34 baht each. The
first trading day is slated for July 2, it said in a statement.
    The funds raised will be used for to expand production
capacity and to pay off debt.  
    Sri Trang Gloves's facilities in Thailand have a production
capacity of 32.6 billion gloves per year, aiming to produce 100
billion by 2032.
    Thailand is the world's biggest producer of natural rubber,
including latex, and has planned for years to increase domestic
use to boost prices.
    Thailand exports latex to Malaysia, where the world's
biggest medical glove marker Top Gloves  TPGC.KL  posted a 366%
jump in third quarter profits on increasing protective gear
demand.  urn:newsml:reuters.com:*:nL4N2DO12V 
    After the share sale, its parent company Sri Trang Agro
Industry will reduce holdings from 73% to 50.7%.
    Finansa Securities Ltd is its financial advisor. 
    
($1 = 31.0200 baht)

 (Reporting by Chayut Setboonsarng and Patpicha Tanakasempipat;
Editing by Simon Cameron-Moore and David Evans)
 ((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))