Strong equity market conditions are making the Thai drinks giant revisit plans to take BeerCo public

Thai Beverage Public Company Limited (ThaiBev), one of Southeast Asia’s largest beverage companies, is reviving plans for an initial public offering (IPO) of its beer unit, BeerCo, according to reports.

The company is also considering bringing in an equity partner for the unit, company executives were quoted as saying. The IPO could occur as early as the third quarter of next year if a decision is reached by December this year.

Michael Chye, head of the beer products group, indicated that the improved market conditions have prompted the company to revisit the IPO plan that was shelved two years ago due to unfavourable market conditions. At that time, ThaiBev had proposed raising up to US$1 billion through the listing.

Chief Executive Officer Thapana Sirivadhanabhakdi said the company has received strong interest from potential partners for the beer unit and is currently in discussions with two parties.

The revival of the IPO plan comes at a time when global stock markets are rebounding, and central banks worldwide are shifting toward monetary easing. ThaiBev aims to leverage these positive trends to enhance its financial position and expand its operations.

ThaiBev’s beer division includes well-known brands such as Chang, Archa, Federbräu, Saigon Beer, and 333 Beer, making the division a significant contributor to the company’s revenue.

The potential IPO or partnership is expected to provide additional capital for growth and help the company navigate an increasingly competitive alcoholics beverage market.

In addition to its beer unit, ThaiBev is also exploring options for its spirits business, including a possible IPO in Singapore. Last year, the company held preliminary discussions with banks on alternatives such as selling a stake in the maker of its popular liquor brands Mekhong and Ruang Khao.