SCG Packaging puts IPO on ice

The packaging business of Thailand-based Siam Cement Group has opted to shelve its planned initial public offering (IPO) due to the impact of the coronavirus on financial markets, two sources in the know told Reuters.

According to the people, the company will wait until financial markets stabilise before going ahead with the flotation.

The sources, who did not wish to be identified as the matter is private, said it is not clear when this could take place and no potential timetable has been established at this time.

Reports of an IPO by SCG Packaging emerged in October of last year, when Reuters cited two people with knowledge of the matter as saying it was planning a local listing and could raise as much as USD 1.00 billion in the process.

The group lodged a prospectus with the Stock Exchange of Thailand in December.

Proceeds have been earmarked for domestic and international expansion and current owner Siam Cement Group said it will retain 70.0 per cent of the business following closing.

Zephyr, the M&A database published by Bureau van Dijk, shows that SCG Packaging’s listing was the fourth-largest IPO by a Thai company to have been announced during 2019.

The most valuable was worth USD 2.28 billion and saw department store operator Central Retail unveil plans to float on the Stock Exchange of Thailand in October. That deal closed in February of this year.

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It was followed by the USD 1.58 billion quotation of Asset World Corp on the same market in October, while third place saw Bangkok Commercial Asset Management raise USD 1.02 billion in December.

SGC Packaging describes itself as a leading provider of comprehensive packaging solutions in the Asean region.

Its offering comprises fibre-based and performance and polymer packaging, as well as food service products, design, printing and other diversified services.

Revenue from sales for 2019 stood at THB 89.07 billion (USD 2.77 billion), up from THB 87.26 billion in the preceding 12 months.

© Zephus Ltd

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