Osotspa Co, the country’s oldest consumer product conglomerate, looks set to seek a listing on the Stock Exchange of Thailand (SET) in 2016 in a deal that investment bankers estimate will be one of the biggest initial public offerings (IPOs) on the bourse.
It will take awhile for the 124-year-old company to study and restructure its complicated organisation before going public, as it has about 50 companies under its umbrella, managing director Thammasak Jittimaporn said yesterday.
Osotspa remains a family-owned company under the Osathanugrah family. Its business interests span glass, lifestyle and consumer products, beverages and medicine. It also has a number of joint-venture companies.
Its flagship brands include M-150, M-100 and Lipovitan-D energy drinks, Ole candy, Babi Mild powder, 12 Plus roll-on deodorant and Tamjai Para tablets.
"Listing the company on the stock exchange will help us to have more reliability and gain confidence," Mr Thammasak said.
"We and our team want to make Osotspa grow in all aspects as an organisation that has the same standards as all blue-chip companies in Thailand."
He said the capital market in Thailand had been developed until it was big enough to support all businesses of Osotspa's companies.
Osotspa believes listing on the SET will be good for fund mobilisation, as investors would become owners of the products they favour.
More investors are keen on putting money into SET-listed stocks related to consumer products.
Mr Thammasak said the company did not yet know how much money would be raised from the IPO, but proceeds would be used for business expansion.
Osotspa is now present in 70 countries and territories worldwide, with 15% of the conglomerate's overall sales coming from international markets.
Given the high growth potential after the single market of Southeast Asia's 10 nations under the Asean Economic Community kicks off late this year, the company plans to expand its beverage business in Asean markets and take its personal care products into new markets.
An investment banking source said Osotspa was restructuring its organisation to prepare for seeking a listing on the country's main bourse.
If Osotspa's listing plan goes through, it is likely to be one of the largest IPOs, Mr Thammasak said.
Another investment banking source said JPMorgan had been chosen as Osotspa's financial adviser for the IPO.