Mr. Chalermchai Mahagitsiri, Chairman of PM Thoresen Asia Holdings Public Company Limited, or PMTA, revealed that his company’s shares will be tradable in the petrochemical and chemical sector on the Stock Exchange of Thailand, or SET, on 6 May, following the highly successful offering of PMTA’s shares to the existing shareholders of Thoresen Thai Agencies Public Company Limited, or TTA, and the public.
“I would like to express my thanks to TTA’s shareholders and the general investors for their trusts by joining our journey to achieve the company’s growth. PMTA is now ready to start listing on the SET as a holding company that aiming for the international reputation and recognition through Baconco. Currently, Baconco’s major customers include more than 130 local wholesalers and more than 10 overseas distributors who supply its products to 32 countries, including the rapidly growing economies in ASEAN and Africa”, Chalermchai said.
He further expresses his confidence that PMTA will generate satisfactory returns to the shareholders as Baconco is well recognized as an international fertilizer producer company according to its outstanding performance in the Vietnamese chemical fertilizer market and the country’s vital agricultural industry, and to its success in expansion of the customers globally.
As its latest progressive development, Baconco has increase a granular production capacity of 100,000 tonnes, which will raise its overall production capacity to 450,000 tonnes per year and place it among the top of Vietnam’s largest private producers. As for the industrial warehouse rental segment, it has recently built a new BCC V-B that is located on the 50,000 square meters area. The primary business segment as the producer and supplier of premium chemical fertilizer and secondary segment as the warehouse management service provider will grow together and lead Baconco towards sustainability growth in order to generate the satisfactory returns to the shareholders.
PMTA, Baconco’s solely shareholder, has offered a total of 35.42 million ordinary shares which 27.32 million shares were offered by TTA and newly issued shares of 8.10 million for a capital increase were offered at the price of THB 18 per share. This offering price is a fully diluted price-to-earnings (or P/E) ratio will be 6.4, significantly lower than the industry average of 8.2 and the average ratio of 13.2 of the petrochemical and chemical firms in the stock market.
Mr. Sigmund Stromme, Managing Director of PMTA, added that Baconco’s chemical fertilizer products, bearing the brand “STORK”, are highly recognised by the customer for their premium quality and satisfaction of international standards. He highlighted that Baconco’s has great potential to achieve consistent growths for years to come. Vietnamese’s agricultural business industry is booming and driving the Vietnamese economy forward. This is together with the country’s population therefore, the food demand is increasing. Also, the economic expansion and trade liberalisation are taking place at the regional level, and new export markets are emerging. All these, combining with the company’s management prowess and its abilities to enhance production efficiency and to produce innovative chemical fertilizers that are tailored made to match with different customers’ preference is further strengthen the company ability to achieve higher growth.
For its 2014 financial operation that ended on 30 September 2014, the company’s gross revenue from agrochemicals and warehouse leasing are totaling THB 3,221 million, with net profits of THB 302 million. More than 95% of Baconco profits are coming from its fertilizer products which NPK Compound Fertilizer is its well known product.