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‘ThaiBev seeking IPO of beer operations in Singapore’
Posted on Friday, 29 November 2019 10:04
Thai Beverage is planning a stock market flotation of some of its brewery operations on the Singapore Stock Exchange, according to recent media reports.

Bloomberg was first to cite people familiar with the matter as saying the drinks manufacturer is in talks with potential advisors about the listing and is hoping a deal will value the unit at USD 10.00 billion.

In addition, these insiders observed the operations are likely to include beer assets in Thailand and Vietnam, where ThaiBev is best known for producing the larger Chang.

While details of the share sale have not yet been finalised, another source told Reuters, the company has been tapping banks to pitch for roles in the initial public offering (IPO), which is expected to raise between USD 2.00 billion and USD 3.00 billion in proceeds.

Representatives for ThaiBev declined to comment when contacted by both news providers.

Bloomberg’s insiders, who asked not to be named as the matter is still private, cautioned no final decision has been made and therefore there is no guarantee a flotation will occur.

Zephyr, the M&A database published by Bureau van Dijk, shows that this could be the biggest IPO to occur in Singapore since 2011 when Hutchison Port Holdings Trust raised USD 3.83 billion.

Shares in ThaiBev rose 2.9 per cent to SGD 0.89 (USD 0.65) at 13:19 today, giving the business a market capitalisation of SGD 22.35 billion.

According to data from Euromonitor International, as cited by Bloomberg, declining growth in the global beer consumption sector has not affected Southeast Asia, where the expanding middle class and youthful population drove a 300.0 per cent increase in beer demand in Vietnam between 2002 and 2017.

In addition to the brewery business, ThaiBev also runs distilleries that produce liquor including SongSam rum, Meridian brandy and Drummer whisky.

Zephyr shows there have been 140 deals targeting brewery operators announced worldwide since the start of 2019.

This included CUB, Heineken, Orion Breweries, Fuller Smith & Turner’s beer business and assets and Dogfish Head Holding.

© Zephus Ltd