Bangkok: SMO opened its first trading day at a price 16.67% lower than the initial subscription price. SMO started trading on the Stock Exchange of Thailand (SET) at 4.50 baht, down from its IPO price of 5.40 baht, marking a decrease of 0.90 baht or 16.67%.
According to Thai News Agency, the debut was marked by the presence of Mr. Asadej Kongsiri, Director and Managing Director of SET, Mr. Sorawit Krairiksh, Deputy Managing Director of Issuer and Marketing at SET, and Mr. Kittipong Puangmala, Chief Executive Officer of Samothong Group Public Company Limited. They jointly launched SMO's first trading day on the SET. Samothong Group Public Company Limited operates in the Agriculture and Food Industry sector, specifically in the Agribusiness category. The company is a producer and distributor of crude palm oil and related products, and also generates and distributes electricity from biogas fuel, adhering to the circular economy concept.
SMO currently operates through four factories located in the provinces of Surat Thani, Chumphon, and Saraburi, boasting a combined extraction capacity of 240 tons of fresh palm fruit per hour. Additionally, the company has a total electricity generation capacity of 14.38 megawatts, underpinned by a 12.7 megawatt Power Purchase Agreement (PPA). The company has established both domestic and international sales channels, solidifying its position as one of the country's major producers of crude palm oil, primarily distributing within the domestic market.
The initial public offering (IPO) price of 5.40 baht resulted in new share capital raising of 1,250.64 million baht, with a market capitalization at the IPO price of 4,968 million baht. The IPO offering price reflects a price-to-earnings ratio (P/E Ratio) of 7.60.
The proceeds from the fundraising are earmarked for the expansion of the crude palm oil business, repayment of loans from financial institutions, investment in production process improvement projects related to environmental, social, and governance (ESG) criteria, and to serve as working capital to support future growth.