Kaset Thai International Sugar Plc (KTIS), Thailand's third-largest sugar producer, expects to list on the Stock Exchange of Thailand by the third quarter of this year to raise funds for its planned biomass expansion.
The company submitted a filing to the Securities and Exchange Commission (SEC) in February to float 958 million shares in an initial public offering, with Kasikorn Securities Plc acting as its financial adviser.
Nathapun Siriviriyakul, KTIS's chief executive for bioenergy and products, said the biomass business is expected to make up half of the company's revenue in 3-5 years from 15-17% now.
"If the SEC does not ask for more details, our shares should start trading by the second week of July," he said.
Majority-owned by the Siriviriyakul family, KTIS will be the third sugar firm listing on the SET after Khon Kaen Sugar (KSL) and Khonburi Sugar (KBS).
"The potential of the biomass sector is huge, and if we use our own [money], its progress may be too slow. We believe the sector in the long term will be a value addition that differentiates us from other sugar companies," said Mr Nathapun in an interview with the Bangkok Post.
There are several technologies to increase the value of bagasse and ethanol, he said, citing the one used in Brazil, a major ethanol producer, which also manufactures chemical products from ethanol.
The company is also looking to hire experts to join management, which now comprises mainly family members, he said.
Once its subsidiary Kaset Thai Bio Power starts selling electricity to the Electricity Generating Authority of Thailand (Egat) two weeks from now, revenue from the biomass business will increase to 35-40% of the group's total, said Mr Nathapun.
The 60-megawatt plant generates electricity from bagasse. Of total output, 50-55 MW will be sold to Egat at 3.50 baht per unit and the rest for internal use.
KTIS owns three sugar mills in Nakhon Sawan and Uttaradit provinces.
Kaset Thai in Nakhon Sawan is the world's largest sugar mill, with daily capacity of 50,000 tonnes of sugar cane.
Mr Nathapun said this is 25% more than the daily capacity of Brazil's largest mill, he said.
He said the capacity next year will be increased to 55,000 tonnes.
Of its annual sugar production of 700,000 tonnes on average, Ruampol can process up to 15,000 tonnes of sugar cane per day, while Thai Identity can handle 18,000 tonnes.
"We will continue to maintain a 10% market share of the country's total sugar cane output," said Mr Nathapun, who is also chairman of Thai Sugar Millers Corporation's policy working group and president of the Federation of Thai Industries' sugar industry club.
KTIS also owns two other subsidiaries _ Ekarat Pattana, which produces ethanol from molasses, and Environment Pulp and Paper, which makes bleached paper pulp from bagasse.
Mr Nathapun expects revenue to be flat this year due to low sugar prices.
Last year, it totalled 24.6 billion baht _ 85.7% from sugar, 6.8% from pulp, 4.9% from ethanol and 2.6% from electricity.