BANGKOK, April 1, 2024 – The Market for Alternative Investment (mai) will list Asian Palm Oil pcl, a crude palm oil extractor and distributor of primary products and by-products derived from crude palm oil extraction, as well as a biogas power producer to feed into the Provincial Electricity Authority’s grid, on April 2, 2024 under the ticker symbol “APO”. The company has a market capitalization at its initial public offering (IPO) of THB 336.60 million (approx. USD 9.25 million).
mai President Prapan Charoenprawatt said APO will start trading on mai in the Agro & Food Industry group.
APO engages in crude palm oil extraction business, mainly selling to domestic crude palm oil refineries. The company’s factory is located in Ao Luek District, Krabi Province, with a production capacity of 60 tons of fresh palm fruit bunches per hour. APO initiated Asian Plus+ project to educate and promote understanding among partner farmers of fresh palm fruit bunches, which are the main raw materials, on harvesting quality palm fruit bunches to increase the extraction rate of crude palm oil. Additionally, the company generates electricity from biogas obtained from the wastewater treatment process and signed a power purchase agreement with the Provincial Electricity Authority in 2004 as a Very Small Power Producer (VSPP) with a maximum electricity capacity of up to 1 megawatt. In 2023, the company’s revenue by business type was as follows: 1) Crude palm oil extraction and distribution of main products and by-products (99.46 percent), and 2) Revenue from electricity sales (0.54 percent).
APO has a paid-up capital of THB 170 million, comprising 240 million existing ordinary shares and 100 million newly issued shares with a par value of THB 0.50 per share. Of the total IPO shares, up to 75 million shares were allocated to persons at the underwriters’ discretion, up to 15 million to the company’s patrons, and up to 10 million to directors, executives, and employees during March 25-27, 2024 at THB 0.99 per share for a total of THB 99 million in fund raised.
The IPO price was equivalent to the price-to-earnings (P/E) ratio of 25.92 times. The earnings per share is equal to THB 0.04 which was calculated from the company’s net profit over the past 12 months (2023) amounting to THB 12.99 million, divided by fully diluted shares. Asset Pro Management Co., Ltd. is the financial advisor, and Kingsford Securities pcl is the lead underwriter.
APO Chief Executive Officer Sittipas Udompholkul said that for over 40 years, the company has been committed to building an integrated and sustainable agricultural product business by delivering quality products at reasonable prices, sourcing raw materials, and ensuring efficient production processes. The company has integrated good governance principles throughout business operations, giving importance to all stakeholders, including social and environmental responsibility, especially in local communities. The proceeds arising from the IPO will be used to invest in improving the efficiency of machinery in the production process and as working capital.
APO’s largest shareholders after the IPO are 1) The family of Nipon Udomphonkun (58.93 percent), Natthaphat Suppipat (3.36 percent), and Pramote Amornpisit (3.31 percent), and 4) Pat Suwannachotisiri (3.31 percent). The IPO price was equivalent to the price-to-earnings (P/E) ratio of 25.92 times. The earnings per share is equal to THB 0.04 which was calculated from the company’s net profit over the past 12 months (from January 1, 2023, to December 31, 2023), divided by fully diluted shares. APO’s dividend policy is to pay at least 30% of net profit after tax and legal reserves.
For more information on APO, please see the company’s prospectus at the Securities and Exchange Commission’s website at www.sec.or.th, and general information on www.asianpalmoil.com and www.set.or.th.
