March 20, 2023

CP Group explores feed and seed business IPO

Major Thai conglomerate Charoen Pokphand Group (CP Group) is considering an initial public offering (IPO) of its animal feed and seed business on the Stock Exchange of Thailand, which has the potential to raise up to US$1 billion in funds, Bangkok Post reported.

Sources said CP Group is restructuring its upstream agricultural operations in anticipation of a potential spinoff that could place the animal feed and seed industries under Chia Tai Co.

The sources also said the conglomerate had preliminary discussions about the listing with potential advisers and that could happen as early as next year. Depending on the state of the market, a share sale could generate between US$600 million and US$1 billion.

The CP unit would join SCG Chemicals Plc and Big C Supercenter Plc In seeking a listing on the Stock Exchange of Thailand, should a transaction go through. Thailand has seena. Decline in IPO activity in 2023, with only US$291 million raised through initial share sales this year, compared to US$544 million during the same period last year.

The size and timeline of the IPO, as well as other considerations, could still change at this early stage. A CP Group representative declined to comment.

-      Bangkok Post