Thai Union Feedmill Debuts on the Stock Exchange


Thai Union Feedmill PCL, a manufacturer and distributor of aquaculture and commercial feeds, says it is confident in the positive response from investors following the company’s listing on the Stock Exchange of Thailand (SET) on November 1 .

Determined to be the leader in commercial aquaculture and animal feed, TFM strives to expand its overseas markets through cooperative agreements and joint ventures with business partners to support current and future food security. from Asia.

Bunluesak Sorajjakit, CEO of TFM, said the company has over 20 years of industry experience and has the expertise that will drive innovations in production processes. The company has become a leader in the production and distribution of aquaculture and commercial animal feeds in Thailand, offering quality branded and well-known products. Sorajjakit is confident that TFM’s IPO will generate broad interest among investors.

The Prospects of Thai Union

A company press release indicates that TFM is poised for sustainable growth and plans to spend the proceeds from the sale of shares (approximately 1,177.4 million baht) between 2021 and 2023. TFM will invest in the following areas:

  • Expand the production and distribution of feed for aquaculture through the Indonesian subsidiary TUKL by adding two production lines, which will increase capacity by 36,000 tons per year, requiring an investment of no more than 250 million baht by 2023.
  • Repay loans of between 250 and 350 million baht by March 2022 to reduce the debt ratio (D/E) to less than once after the IPO.
  • Use the rest as working capital.

As a policy, TFM intends to pay dividends twice a year, amounting to at least 50% of net profit according to the consolidated financial statements after reduction of all categories of reserves in accordance with corporate rules and legal requirements.

Sorajjakit adds that the company is determined to expand its operations to overseas markets with appropriate business models deemed beneficial.

Pichet Sithi-amnuay, managing director of Bualuang Securities, the company’s financial adviser and IPO underwriter, says TFM is in a prime position to expand in local and overseas markets. TFM’s experience and expertise, as well as its product portfolio covering the entire aquaculture life cycle, make it highly competitive. So far, TFM has attracted great interest from institutional and retail investors.

Read the full investment brief here.

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