SCG Packaging Plc (SCGP), a subsidiary of Siam Cement Plc, debuted shares on the Stock Exchange of Thailand (SET) on Thursday and closed at 35 baht, the same value as its initial public offering (IPO), making it the largest listing this year with a total market capitalisation of 170 billion baht.
SCGP opened at 37 baht per share and closed at 35 baht in trade worth 11.86 billion baht.
The SET index fell 0.2% to close at 1,213.61 points in trade worth 66.26 billion baht.
Asia Plus Securities said SCGP traded at a price-earnings ratio of 21 times, lower than other companies in the same sector, which have an average of 24 times.
The company is seen as having high growth potential because of the rapid spread of e-commerce in Thailand and the whole of Asean.
ASP has listed a fundamental fair price for SCGP of 41 baht per share.
SCGP allocated about 1.13 billion newly issued ordinary shares with a par value of 1 baht per share.
The company will allocate up to 169 million newly issued ordinary shares with a par value of 1 baht per share to the over-allotment agent, which is not more than 15% of the total number of newly issued ordinary shares in the offering. These account for about 3.8% of the total number of SCGP’s issued and paid-up ordinary shares.
SCGP has a greenshoe option of 169 million shares to support the price, keeping it stable in the short term.
The company is also potentially on the fast track to be included in the SET50 and SET100 indices and the MSCI index for the next round of offerings on Nov 10.
Two other large newly listed firms, Asset World Corporation (AWC) and Central Retail Corporation (CRC), are also on track to be added to these indices.