Growing Vegetables Because I Love Mom Public Company Limited Sets IPO Price

Growing Vegetables Because I Love Mom Public Company Limited, also known as OKJ, has announced the price for its initial public offering (IPO) of no more than 159,000,000 shares, with a par value of 0.5 baht per share, at an offer price of 6.70 baht per share. The subscription period is set for 23-25 September 2024, with Bualuang Securities Public Company Limited serving as the financial advisor and underwriter.

Business Overview

OKJ’s primary business is food service and delivery, focusing on healthy drinks and products under the concept “Be Organic of Farm to Table.” The company emphasizes growing vegetables using organic farming methods and offers food and drinks made from quality organic ingredients to promote good health among its customers.

Financial Performance

Based on the company’s net profit of 169.08 million baht over the last 12 months, and considering the total number of ordinary shares after this offering (Fully Diluted), which is equal to 609 million shares with a par value of 0.50 baht per share, the net profit per share will be approximately 0.28 baht per share. This translates to a Price to Earnings Ratio (P/E) of about 24.13 times.

Shareholders and Stock Purchase Agreement

The company’s three major shareholders are Chalakorn Ekachaipattanakul, Jirayut Phuwapoonphon, and Woradej Suchaibunsiri. Modulus Enterprise Company Limited (Modulus), a subsidiary of PTT Oil Business and Retail Public Company Limited (OR), has entered into a stock purchase agreement to acquire 31,800,000 original shares from the co-founder at the same price as the IPO shares on the first day of trading.

IPO Proceeds and Utilization

The company expects to raise approximately 1,023.9 million baht from the IPO, which will be utilized for the following purposes:

• Expanding the company’s business, including the expansion of Ohkajhu stores, Ohkajhu Wrap & Roll stores, and Oh! Branch improvements, as well as the expansion of the company’s distribution channels (753-759 million baht)
• Investing in building a new central kitchen, developing machinery, equipment, and vegetable washing rooms, and implementing various information technologies to increase production efficiency (190-230 million baht)
• Investing in machinery, equipment, and public utilities to increase efficiency in cultivating the land, including building a facility for product quality inspection (internal laboratory) (30-35 million baht)
• Repaying loans from financial institutions not exceeding 50 million baht