Chememan Plc (CMAN), Thailand's largest lime derivative chemicals producer and distributor, is preparing to issue an IPO, with the aim of financing its operations in Saraburi and beyond.
Adisak: Wants to join top 10 in the world
Chememan plans to float 240 million shares for the IPO on the Stock Exchange of Thailand (SET) this quarter with a combined value of 670 million baht.
Chief executive Adisak Lowjun said the company wants to increase its investments to serve constantly rising lime demand in several regions, including expansion of its Kaeng Khoi plant in Saraburi, adding annual quicklime production capacity of more than 100,000 tonnes and raising total capacity to more than 900,000.
The company expects to begin commercial operations in the first quarter of 2018.
"Our expansion will make Chememan one of the world's top 10 lime producers and distributors, increasing our quicklime production capacity to 1 million tonnes," he said.
The company wants to construct a new warehouse and silo adjacent to its Kaeng Khoi plant to improve inventory management efficiency, expected to be complete in the second quarter.
The firm has formed a joint venture with an Indian firm operating in the port cities of Visakhapatnam and Tuticorin, with commercial operations set to begin in 2019.
Founded in March 2003, Chememan is the only lime company in Thailand that possesses both lime production plants and a 25-year mining concession, valid until June 2040 and granted by the Industry Ministry, for a quarry located in Kaeng Khoi district, Saraburi. The quarry has more than 115 million tonnes of mineable reserves containing ultra-high calcium limestone.
There are three main product lines distributed under the Chememan trademark both locally and internationally: quicklime (calcium oxide), hydrated lime (calcium hydroxide) and limestone and limestone grinding (calcium carbonate).
"Our products serve both local and foreign markets," he said. "Chememan is also seeking a new areas for raw materials in Laos and Vietnam."
According to a survey conducted on Thailand's lime industry by Frost & Sullivan, Chememan dominates with the highest market shares for quicklime and hydrated lime in both the domestic and export segments.
Chememan's total revenue for the first nine months of 2017 rose by 11.9% to 1.63 billion baht. In 2016, the company reported revenue of 2 billion baht.
