Chang Beer is ThaiBev’s flagship beer brand and one of the most recognisable brands around Southeast Asia.
A recent report by Reuters has revealed that Thai brewing giant ThaiBev is expected to revive it’s plans to list it’s regional beer assets through an Initial Public Offering on the Singapore Stock Exchange.
The Thai beverage giant, controlled by billionaire Charoen Sirivadhanabhakdi, is the producer of Chang Lager, one of Thailand’s top selling beer brands as well as Vietnam’s market leader SABECO which it acquired in 2018. It also runs an extensive portfolio of spirits and soft drinks including Mekhong rum and the Fraser & Neave brand.
Parent company Thai Beverage Plc has a market capialization in excess of $13 billion.
It is anticipated the move to list it’s brewing operations could raise ThaiBev up to $2 billion. If it were to proceed as expected the IPO would be the largest listing on the SGX for over eight years.
The listing may take place as soon as the first half of 2021, however in a statement issued on Monday 19th January from ThaiBev spokesperson Nantika Ninvoraskul stated “THBEV continues to evaluate the possible listing of its beer business with its appointed advisors, but no final decision has been taken as to whether any potential listing will occur, and/or on the details of any such listing.”
The statement also explains “THBEV has been exploring avenues to optimise its asset portfolio and enhance value for its shareholders, including the potential listing of its beer business.”
The revenue from such an offering would provide much needed funds to help ThaiBev finance part of it’s $4.8 billion purchase of 54% of Vietnam’s SABECO as well as finance the anticipated purchase of the 36% stake currently held by the state-owned soverign fund State Capital Investment Corporation (SCIC).
ThaiBev has also committed to invest $230 million (THB 7 billion) in it’s breweries upgrading in Thailand and sales infrastructure.
An initial IPO was planned for 2020, but was halted due to the global pandemic as global markets plummeted. This new move is seen as a sign that the brewer has confidence that the worst of the economic impact of the virus is over and the regional economies are well on their way to recovery.
The region’s last major brewing company IPO saw AB InBev’s Budweiser Brewing Company APAC Ltd raise $5 billion through an offering in Hong Kong in September 2019. Since then it’s share price has fallen by 10%.
