PUBLISHED : 15 Aug 2023 at 05:20
SCG Chemicals Plc (SCGC) plans to ask its board of directors to approve a timeline for its initial public offering (IPO) by next month.
Tanawong Areeratchakul, president and chief executive of SCGC, said the company already filed a registration statement and draft prospectus with the Securities and Exchange Commission to launch an IPO in the final quarter of this year.
"We need to discuss the timeline to sell shares to investors and the board will have the final say," he said.
Mr Tanawong said the company must carefully consider its IPO plan because petrochemicals are a cyclical industry.
SCGC was listed on the Stock Exchange of Thailand on April 27 last year.
The company said it plans to conduct a trial run for its three downstream petrochemical plants at the Long Son Petrochemicals (LSP) complex in Vietnam.
SCGC has spent around US$5.4 billion developing LSP. The new petrochemical complex is scheduled to start commercial operations by next year.
The company operates petrochemical factories in Thailand, Vietnam and Indonesia, with a combined production capacity of 6.9 million tonnes. With the inclusion of LSP, the capacity will increase to 9.8 million tonnes.
SCGC also joined with two global green plastic makers -- Netherlands-based Avantium NV and Japan-based IHI -- to build a pilot plant expected to make use of carbon dioxide in producing new products, notably raw materials for a manufacturing process under the circular economy concept.
A circular economy involves an upcycling process to add value to unwanted materials and make them usable again.
This project will play a key role in supporting global campaigns to reduce carbon dioxide emissions, said Mr Tanawong.
During the first six months of 2023, SCGC posted a revenue decline of 30% year-on-year to 95.6 billion baht, mainly attributed to lower product prices, although second-quarter revenue rose by 4% quarter-on-quarter to 48.8 billion, driven by higher sales of polyolefins.
The company's profit for the period plunged by 71% year-on-year because of lower equity income from associates, a drop in sales and lower chemicals' spread, which is the difference between prices of chemical products and costs.
SCGC set to finalise timeline for pending IPO - Bangkok Post
Read More
No comments:
Post a Comment