* SCG Packaging prices IPO at 35 baht, top of range
* Company set to raise $1.5 billion
* First trading day on Oct 22
BANGKOK, Oct 8 (Reuters) - Thailand's Siam Cement Group
Packaging PCL (SCGP) priced shares in its initial public
offering (IPO) at the top end of an indicated range, in the
country's second-biggest listing this year that could raise up
to $1.5 billion.
The unit of Thailand's largest industrial conglomerate, Siam
Cement PCL, said in a statement on Thursday the IPO
shares were priced at 35 baht each due to strong demand from
SCGP is selling up to 1.3 billion shares, or nearly 30% of
the total shares in the company, including an overallotment
portion to raise as much as 45.4 billion baht ($1.46 billion).
Trading in the shares will begin on Oct. 22.
The IPO comes as listings in Southeast Asia pick up
gradually after a lull caused partly by the coronavirus
pandemic. Central Retail Corporation, which began
trading in February, raised 78.1 billion baht.
It also comes as delivery and e-commerce related businesses
get a boost from rising online demand amid the pandemic.
SCGP booked revenue of 45.9 billion baht in the first half,
up 11% from the year-ago period, with half of that coming from
its high-performance packaging, paper materials and paper
business and a quarter from pulp and paper, a company filing
Proceeds from the IPO will be used to repay debt and for
business expansion in Southeast Asia, the company said.
Cornerstone investors account for 60% of the IPO, with the
bulk made up of a dozen domestic funds including SCB Asset
Management and Kasikorn Asset Management.
Four foreign investors, including Avanda Investment, NTAsian
Discovery Master, and Tudor Systematic Tactical Trading, account
for about 11% of the cornerstones.
SCGP has a policy of paying out at least 20% of profits as
Morgan Stanley and UBS led the international sales of the
IPO, while Bualuang Securities and SCB Securities coordinated
(Reporting by Scott Murdoch, Anshuman Daga and Chayut
Setboonsarng; Editing by Clarence Fernandez and Muralikumar