Thai Beverage: Brewery unit's SGX IPO not a 'certainty'

A 29 November Bloomberg article had reported that the food and beverage company was looking to list its beer business on the Singapore bourse.

Thai Beverage Public Company Limited has clarified on an earlier report that it was planning to list its brewery business on the Singapore Exchange Limited (SGX).

It was reported in a Bloomberg articled dated 29 November 2019 that the beverage producer was considering a S$3 billion initial public offering of its brewery unit.

ThaiBev’s response: ‘No certainty that any such transactions will occur’

ThaiBev issued the following statement in response:

‘The Company wishes to clarify that as part of its normal course of business, ThaiBev continues to focus on executing its strategies and to explore avenues for the optimisation of its asset portfolio and enhancement of shareholder value.

To this end, ThaiBev is presently evaluating strategic proposals and opportunities, including but not limited to a potential listing of its beer business, in consultation with its external advisors. However, discussions on such strategic projects are still at exploratory or early stages and ThaiBev wishes to emphasise that there is no certainty or assurance that any such transactions will occur.

ThaiBev will issue an appropriate announcement if and when there is a firm decision to proceed with any such proposal, in accordance with the relevant Thai and Singapore regulations.’

On Friday morning, the company was queried by the SGX for ‘unusual volume movements’ surrounding its shares. Some 25.3 million shares were traded that morning alone – the second-most heavily traded by volume – up 62.23% from 15.5 million shares on Thursday, and 132.11% from 10.9 million shares on Wednesday.

The company responded with this statement: ‘In view of the unusual trading activity as identified by the SGX, shareholders and potential investors should seek appropriate professional advice and exercise caution at all times when dealing in the Shares and securities of ThaiBev, and refrain from taking any action in respect of their investments which may be prejudicial to their interests.’

ThaiBev requested for a trading halt at 1.19pm on Friday. Prior to the stoppage, shares had risen 4.6% to S$0.905. At their peak, stock prices rose as much as 5.2%.

According to Bloomberg, the drinks maker was in talks with potential advisors regarding a listing next year, and was targeting a valuation of S$10 billion. If this is true, this would be the largest listing since Hutchison Port Holdings Trust’s S$5.5 billion IPO in 2011 on the Singapore exchange.

ThaiBev shares traded flat at S$0.900 to open Monday morning’s proceedings.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.