mai welcomes packaging printing service provider STP on June 14

Industry

Bangkok, Market for Alternative Investment (mai) will list

Sahathai Printing & Packaging pcl, a manufacturer and printing service provider

for paper packaging and all kinds of printed materials, on June 14, under the

ticker symbol “STP”. The company has a market capitalization at its initial

public offering (IPO) of THB 1.80 billion (approx. USD 52.17 million).

mai President Prapan Charoenprawatt said that STP would list and start trading

on mai in Industrials industry group.

STP provides packaging printing services using offset printing system for

packaging made of paper supplied by the company or customers and all kinds of

printed materials. The company offers one-stop services starting from developing

and designing packages, producing high quality plates, printing up to 12

colors, to providing post-printing services as required by customers, such as UV

coating, silver and gold foil stamping, and corrugating and die-cutting.

The company’s large-scale clients consist of manufacturers of export-oriented

products in food and beverages, medical supplies, and consumer goods. In 2021,

packaging products made of paper supplied by the company accounted for 94

percent of total revenue, and services and other revenue made up 3 percent each.

STP’s current factory is located on a 25-rai land plot on a 30-year leasing

contract in Ladlumkaeo district, Pathum Thani province (north of Bangkok), with

expiration date on August 31, 2049. The plant has an annual production capacity

of 49.7 million printed sheets.

STP has a registered paid-up capital of THB 100 million, consisting of 74.60

million existing common shares and 25.40 million newly issued shares, with a par

value of THB 1.00 each. It offered 17.99 million newly issued shares to persons

under the underwriters’ discretion, 2.50 million shares to institutional

investors, 3.81 million shares to its patrons, and 1.10 million shares to its

directors, executives and employees on June 2, and 6 – 7, 2022, at THB 18 each,

for a total of THB 457.20 million. The IPO price was equivalent to

price-to-earnings ratio of around 15 times. The earnings per share is equal to

THB 1.22, which was calculated based on the company’s net profit of THB 122.30

million in the past 12 months (from April 1, 2021 to March 31, 2022), divided by

fully diluted shares. KGI Securities (Thailand) pcl is its financial advisor

and Asia Plus Securities Co., Ltd. is the lead underwriter.

STP Chief Executive Officer Suranai Rojwongcharas said that the has the

experience and expertise in packaging printing business for more than 50 years

with focus on quality services and world-class production process catering to

customers’ needs, as such gaining customer trust and confidence continuously.

The proceeds arising from the fundraising will be used to invest in factory

expansion and additional machinery, and as working capital.

STP’s major shareholder after IPO is the Rojwongcharas family (74.60 percent).

STP’s dividend policy is to pay no less than 40 percent of net profit after tax

from the company’s separate financial statement of each period, and after legal

reserves and those required by the company’s regulations.

Source: The Stock Exchange of Thailand