SCG will list packaging unit to fund expansion
Foreign and domestic investors will have a new opportunity to buy into SCG (Siam Cement Group), considered the bluest of blue-chip Thai companies, as the firm is planning an initial public offering for its lucrative packaging unit to fund domestic and overseas expansion.
SCG officially informed the Stock Exchange of Thailand last week that it intends to list its packaging subsidiary but did not disclose the timing or size of the initial public officer (IPO). Nonetheless, SCG CEO Roongrote Rangsiyopas said the company would remain the major shareholder with 70 percent of the shares while offering 30 percent to the public.
Reuters news agency reported that the IPO would be worth $1 billion.
SCG is a building materials conglomerate and Thailand’s second-largest company. It has long been regarded as one of the Kingdom’s most well-managed firms. It was the first modern Thai company when it was founded in 1913.
Roongrote said the listing would enable SCG Packaging to mobilize funds to increase its capacity and pursue business expansion in the long-term. Earlier this year, the company bought an Indonesian paper firm, Fajar, for $665 million.
SCG has been an early and strong advocate of sustainability in Thailand and has been adopting and promoting the Circular Economy as a guiding principle in its operations. The Circular Economy calls for the careful use of resources, green design of products, and reuse and recycling when a product’s lifespan is over.
The firm has also been taking steps to slash its production and use of single-use plastics, and experimenting with biomaterials and alternative materials in its packaging and other products.
Photo courtesy of https://scgnewschannel.com/en/scg-ne