The price of Sri Trang Gloves Thailand (STGT)’s shares went up by nearly 70 per cent on its first day of trading.
The rubber-glove maker’s initial public offering price was 34 baht.
After entering the Stock Exchange of Thailand (SET) on Thursday, the stock was trading at 57.25 baht as of 11 a.m., up by 68.38 per cent from its IPO price.
STGT is rubber-glove making arm of Sri Trang Agro Industry. The subsidiary has a market capitalization at its IPO of 48.58 billion baht and with a registered paid-up capital of 1.43 billion baht.
They also have a production capacity of 32.6 billion gloves per year with three manufacturing plants in Songkhla, Surat Thani and Trang.
The rubber-glove maker made 3.79 billion baht in the first three months of 2020, up 25 per cent from 2.98 billion baht in the same period in 2019.
Jarinya Jirojkul, STGT Chief Executive Officer, said the fundraising will be used to expand and improve production efficiency, as well as invest in the IT system.
It also plans to expand its capacity following the IPO to 50 billion gloves per year by 2024, 70 billion by 2028 and 100 billion by 2032.
STGT’s major shareholders after IPO are STA group and Sincharoenkul family (66.1 per cent), Poonsuk Chirdkiatgumchai (2.3 per cent), including STGT & STA directors, executives, and employees (0.8 per cent)
STGT’s dividend policy is to pay no less than 30 per cent of net profit.
