Home Business ‘Thai Union Feedmill’ raises IPO prices Aims to penetrate the aquatic feed business in foreign countries

‘Thai Union Feedmill’ raises IPO prices Aims to penetrate the aquatic feed business in foreign countries

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‘Thai Union Feedmill’ taps the IPO price of 13.50 baht, aiming to penetrate the aquatic feed business abroad

Mr. Banluesak Soratchakit, Chief Executive Officer of Thai Union Feed Mill Public Company Limited (the Company) or TFM, a fully integrated manufacturer and distributor of aquatic animal feed and economic animal feeds The company was listed on the Stock Exchange of Thailand (SET), which this fundraising will increase its competitiveness to support business opportunities. because the company’s business Not limited to the market in Thailand only. But it has also expanded its business to countries where the aquaculture industry has high growth potential. through a business model suitable for each country, such as exports to Sri Lanka, Malaysia, Bangladesh and Myanmar, joint investments with partners Established subsidiaries in Indonesia and Pakistan. The Company’s main customers are animal feed stores. and animal farms This will be another factor that supports the growth of revenue and profits of the company in the next period. With sales growth in Thailand growing at an average of 5-10% per year, the company plans to continue to grow in the international market as well. In the next 3-5 years, the proportion of the Company’s revenue From the international market will increase to 25% from the present 3% and in the future over the next 5-6 years, foreign revenue is expected to increase to 50% of the total sales. by targeting income abroad in the year 2022 to grow by 10%, by 2023, by 15%, and by 2024, to grow by 25%.

Mr. Banluesak said that the Company has 3 important business strategies and guidelines as follows: 1. Maintain and develop leadership in the production and distribution of aquatic feed in the country. through cooperation with business partners ready to help support the growth of aquaculture farm customers 2. Develop product quality and production efficiency according to international standards. to create sustainable competitiveness through focusing on product development and recipes Including food recipes for new species of aquatic animals. To promote a more diversified marine life such as giant snapper, grouper, gourami food, crab food, and squid, and 3. Expand customer base to countries with potential for growth. especially in countries where there is the possibility of investment expected rate of return Risks and guidelines for managing or reducing risks, which the Company will take into account the interests of shareholders as much as possible.

Mr. Banluesak said that at present the company Products are produced and sold. Under the company’s main brands are Pro Feed (PROFEED), Nanami (NANAMI), Ego Feed (EGOFEED), Acqua Feed (AQUAFEED) and D-GROW (D-GROW), which can be divided into 3 product groups as follows: 1. Shrimp feed products, which the Company is one of the leaders in the shrimp feed market. Has a market share of approximately 17% of the shrimp feed in Thailand (year 2020). 2. Fish food products. (including frog food and crab food) divided into marine fish food freshwater fish food The Company is one of the pioneers and leaders in the market for snapper food. which is a fish food product with a selling price and a relatively higher profit margin than other types of fish food. The company has a market share of seabass food about 24% of the volume of Thai seabass feed (year 2020) and 3. Food products. land animals divided into pig feed and poultry feed, which the Company began to expand into the livestock feed business at the end of 2018 and has a satisfactory growth trend.

In this regard, the Company has 2 manufacturing plants which are 1. Mahachai Factory, Mueang District, Samut Sakhon Province, and 2. Ranot Factory, Ranot District, Songkhla Province, which are potential locations and suitable for business in aquatic animal feed production. Since the central and southern regions are the country’s important breeding and aquaculture regions, both plants have a total production capacity of 273,000 tons per year (as of June 30, 2021), divided into 153,000 tons of shrimp feed per year, food. 90,000 tons of fish per year and 30,000 tons of land feed per year, including automatic and semi-automatic production lines. that has a control system and operates with a computer system Able to track production data during the production process immediately (real-time)

Mr. Pichet Sithi-amnuay Managing Director Bualuang Securities Public Company Limited as a financial advisor and underwriter and underwriting manager, said that Thai Union Feed Mill Pcl. has set the price for the initial public offering (IPO) at 13.50 baht per share. 109.3 million shares, which is the highest price in the bookbuilding price range. At this price, the price-to-earnings (P/E) ratio is 21.7 times, considering the net profit attributable to the Company’s shareholders during 12 months back It is considered a reasonable price level. By preparing to open for investors to subscribe for IPO shares on 19 – 21 October 2021 and expect to list and trade the first day on the Stock Exchange of Thailand. within this October

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