SET welcomes pet food manufacturer and distributor “AAI” on November 1

Industry

BANGKOK, The Stock Exchange of Thailand (SET) will list Asian

Alliance International pcl, a manufacturer and distributor of pet foods and

ambient ready-to-eat foods in sealed containers, on November 1, under the ticker

symbol “AAI”. The company has a market capitalization at its initial public

offering (IPO) of THB 11.79 billion (approx. USD 312.23 million).

 

SET Senior Executive Vice President Manpong Senanarong said that AAI would list

and start trading on SET in the Agro & Food industry group, Food & Beverage

sector.

 

AAI is a leading pet food manufacturer in Thailand with growth potential in

producing ready-to-eat food in sealed containers. AAI is the pet business

flagship of Asian Sea Corporation pcl (ASIAN) group. The products that generate

more than 80% of the company’s core income are wet and dry pet foods, in

response to pet lovers for both dogs and cats, well-recognized by OEM customers

who sell products under leading international brands in various countries. In

addition, the company has developed proprietary brands to meet customers’ needs

covering all segments: premium, mass, and competitive pricing markets such as

Monchou, Maria, Hajiko and Pro.

 

AAI has a registered paid-up capital of THB 2.13 billion, consisting of 212.5

million existing common shares held by ASIAN and 425 million newly issued

shares, totaling 637.5 million shares, with a par value of THB 1 each. It

offered 627.5 million existing shares and newly issued shares to the general

public at THB 5.55 each, and offered 10 million newly issued shares to the

company’s directors and executives, during October 17-26, 2022, fetching a total

fresh fund of THB 2.35 billion from the total offering of THB 3.53 billion. The

IPO price was equivalent to the price-to-earnings ratio (P/E ratio) of 16.98

times. The earnings per share (fully diluted EPS) is equal to THB 0.33, which

was calculated from the company’s net profit of THB 694.56 million in the past

four quarters (from Q3/2021 to Q2/2022), divided by fully diluted shares. TISCO

Securities Co., Ltd. is its financial advisor and lead underwriter.

 

AAI Managing Director Ekarat Pansang said that the company has been producing

and selling quality products according to high safety standards for more than 15

years. The company’s strengths are the ability to raise the R&D level and the

strategic move to be co-developer of the products with the customers. The

company is committed to catering to customer needs and delivering the best

products. Listing on SET will help boost competitive potential, and strengthen

financial position in terms of lower financial costs and higher confidence among

partners. The fund raised will be used to fund the wet pet food production

capacity increase, invest in the second automated warehouse, repay loans to

financial institutions, and as working capital.

 

The company’s dividend policy is to pay no less than 50 percent of net profit

from the company’s consolidated financial statements after tax and all types of

legal reserves as specified by law. However, such dividend payment is subject to

change based on the necessities in investments and working capital.

After the IPO, the company’s three major shareholders are 1) ASIAN (70 percent),

2) Somsak Amornrattanachaikul (3.07 percent), and 3) Rautchchayuth

Jerapornprapa, M.D. (1.04 percent).

 

Source: The Stock Exchange of Thailand