09 March 2018

CMAN Prices Its IPO at 3.84 Baht, with approximately 20 times Oversubscription from Institutional Investors, With March 14-16 being the Official Subscription Day

And Aiming to Reach Production Capacity of 1 million tonnes per year by 2020, and to Become Among the World’s Top 10 Lime Producers

Chememan PCL. (SET: CMAN), Thailand’s largest lime and lime derivative chemicals producer and distributor, has priced its IPO at 3.84 baht per share, with approximately 20 times oversubscription. The subscription period for general investors was set to be March 14 – 16 with the expected first trading day on the Stock Exchange of Thailand on March 21. The management targeted the lime production capacity expansion to reach 1 million tonnes per year by 2020 in order to become the world’s leader in the lime industry and to place it among the World’s top 10 lime producers.

On March 9, 2018, Chememan PLC(SET: CMAN), had signed a contract of appointment with TISCO Securities Co., Ltd. to be the lead underwriter of the IPO, along with Asia Plus Securities Co., Ltd., Finansa Securitites Co., Ltd., Finansia Syrus Securities Plc., KGI Securities (Thailand) Pcl., Krungsri Securities Pcl., KT ZMICO Securities Co., Ltd., and MayBank Kim Eng (Thailand) Pcl., as co--underwriters of the IPO.
Mr. Manop Petchdumrongsakul, Head of Corporate Finance, a representative of TISCO Securities Co., Ltd. the lead underwriter of the IPO, disclosed that through book building between March 6-8 with the average price range of 3.72 – 3.84 baht per share, the institutional investors expressed their requests for subscription with the highest price of 3.84 baht per share and approximately 20 times oversubscription of the allocated shares. This led to the IPO price at 3.84 baht per share. The subscription period for the general investors will be from March 14-16. The shares are expected to be publicly traded on the Stock Exchange of Thailand on March 21, 2018.

The present 1 billion baht registered capital of Chememan PLC, consists of 1 billion common stocks with the par value of 1.00 baht per share, which with the issued and the paid-up capital of 720 million baht of which is the IPO issuance not exceeding 240 million shares, or accounting for not exceeding 25% of the total issued and paid-up capital of the Company. After the issuance of the IPO, the proceeds are to use for the lime production expansion in Thailand and overseas, repayment of bank loans, and working capital.

Chememan PLC is Asia’s leader in lime and specialty chemicals industry as well as Thailand’s largest lime producer and distributor with the existing installed production capacity of approximately 800,000 tonnes per year (as of 30 September 2017), from three production plants in Saraburi and Rayong provinces, with two major distribution centers in Australia. The company had recently commissioned a new quicklime kiln (KK6) in Kangkoi, Saraburi province which increase the total capacity to more than 900,000 tonnes per year.

Mr. Adisak Lowjun, Chief Executive Officer, said that lime products have been extensively used as key raw materials found in consumer products such as paper, sugar, bio-plastics, glass & bottle, animal feeds, and many others. The company is  the only lime company in Thailand that possesses both lime production plants and a 25-year mining concession (valid until 23 June 2040) granted by the Ministry of Industry for a quarry located in Kangkoi district, Saraburi province. The quarry has more than 115 million tonnes of mineable reserves containing ultra-high calcium limestone (survey data as of October 2016), which gives competitive advantages in terms of quality of limestone  and cost control.

According to the survey conducted on Thailand’s lime industry by Frost & Sullivan, Chememan PLC dominates the market with highest market shares for quicklime and hydrated lime in both domestic and export segments. In 2016, its shares of quicklime and hydrated lime sales contributed to 29% and 21%, respectively for the domestic segment and 81% and 84%, respectively for the export segment. In 2017, the company recorded its total revenue of 2.215 billion baht with a net profit of 109.31 million baht.

Mr. Adisak Lowjun added that the company aims to place itself among the world’s top 10 lime producers by increasing its production capacity to 1 million tonnes per year by the year 2020. In response to growing demand, the increased capacity will contribute to expansion of customer base, which currently has covered over 20 countries across  Asia, Australia, and Africa.

The Company is in the process of expanding its business to India, one of the many high potential markets, in form of a joint venture with local partners in which Chememan holds 50% shares. The new ventures will produce and distribute lime products in Visakhapatnam and Tuticorin, which are major ports and industrial hubs in India. The required investment from Chememan is set to be 87.50 million baht and 115 million baht for Visakhapatnam and Tuticorin plants, respectively.

“Chememan’s vision is to be among the top 10 leading producer in the global lime and specialty chemicals industry. We are committed to achieve the right balance among all stakeholders’ interests and expand customer base in various industries both locally and internally in order to continuously generate high returns for shareholders. We ensure that the company develops and grows sustainably and in adherence to good corporate governance principles”, said Mr. Adisak.