Thai Siam Cement’s packaging unit set for $1.36b IPO
Thailand's Siam Cement Group's (SCG's) packaging subsidiary is planning a local listing, in a float that is set to raise about US$1 billion (S$1.36 billion), two sources with knowledge of the matter said.
The IPO of SCG Packaging, which could be announced as early as this week, is aimed at independently beefing up the company's funding needs as it charts out a regional expansion strategy, they said.
"Siam Cement has been considering options for this business and an IPO is the next step," said one of the sources.
The sources declined to be identified as news of SCG Packaging's IPO has not been publicly reported. There was no response to e-mails sent to SCG Packaging.
SCG Packaging is the holding company for the packaging, packaging paper, forestry, pulp and paper business of the country's largest industrial conglomerate.
The unit, 99 per cent owned by SCG Packaging, is expected to file for an IPO in December and launch the issue in the first half of 2020, one of the sources said.
SCG Packaging has enjoyed strong business growth in the last few years. - REUTERS