The logo of Siam Cement Public Company Limited is pictured at their office building in central Bangkok, Thailand, June 9, 2016. REUTERS/Chaiwat Subprasom/File Photo acquire license rights
- An IPO may not be appropriate at this time, according to Siam Cement
- The company will proceed with the IPO once conditions improve
- Siam Cement shares are down 7% year-to-date
SINGAPORE, Aug 28 (Reuters) – Thailand’s largest industrial conglomerate Siam Cement (SCC.BK) said on Monday it had decided not to proceed with the upcoming domestic initial public offering (IPO) of its unit SCG Chemicals (IPO-SCGC.BK). attributed to unfavorable market conditions.
Siam Cement said in an IPO filing that “it may not be appropriate to proceed with the IPO at this time.”
The company, which counts King Maha Vajiralongkorn among its largest shareholders, attributed the decision to “the willingness of both Thai and foreign capital market investors to take on a major IPO of a Thai company at this time, as well as external circumstances such as the economic situation and.” energy crisis.”
Siam Cement announced the IPO plan for SCG Chemicals in April last year. Monday’s statement said the IPO approval period had been extended to October 4 this year but could not be extended further.
Siam Cement said it intends to go ahead with SCG’s IPO “in due course” once conditions improve.
Thailand, Southeast Asia’s second largest economy, last week elected its new prime minister, property magnate Srettha Thavisin, after months of interim government and political limbo following May’s general election.
Siam Cement’s decision to list SCG on the stock exchange could impact other potential listings on the Thai Stock Exchange. Other Thai companies targeting an IPO include Big C Supercenter and CPF Global Food Solution.
Siam Cement, whose businesses range from packaging to investments, has seen its shares fall 7% this year. According to Refinitiv, it has a market value of $10.9 billion.
SCG is the chemicals arm of Siam Cement, which according to its website makes plastic resins, or polymers, that are molded into products used in food packaging and automotive parts.
Reporting by Yantultra Ngui; Edited by Muralikumar Anantharaman
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