SAMUT SAKHON, THAILAND — Thai Union Group, a global seafood producer, is moving toward listing its wholly owned pet food subsidiary, i-Tail Corporation Public Company Limited (PCL), on the Stock Exchange of Thailand (SET).
The company announced its initial public offering (IPO) of 660 million shares — including 600 million newly issues shares and the sales of 60 million existing shares — was approved by the Securities and Exchange Commission (SEC) on Sept. 20.
On Nov. 4, Thai Union announced the offering of 132 million shares for Thailand-based shareholders. The preemptive ratio of Thai Union’s ordinary shares to i-Tail Corporation’s newly issues ordinary shares is 34.9935, the company stated.
On Nov. 7, i-Tail Corporation invited investors and interested parties to attend an IPO briefing on Nov. 16. Company leadership will present relevant information during the briefing, including a behind-the-scenes look at the company’s R&D and pet research.
The company plans to use funds raised through the IPO to expand production capacity, improve production efficiency, and expand production infrastructure by incorporating modernized systems and automation, such as an automated warehousing and labeling system. The company also hopes to use the funds to expand its overseas business and repay debts.
According to i-Tail Corporation, the company recorded 9.71 billion baht ($259.55 million USD) in revenue in the first half of 2022, up 38% year-over-year, with a net profit of 2.26 billion baht ($60.35 million USD), up 40% year-over-year.
Note: Baht to USD currency conversions are based on Nov. 7 conversion rates.
“Our growth in the first half underscores the company's commitment of co-creating products with customers (co-creation) with innovation to meet the needs of consumers,” said Pichitchai Wongpiya, chief executive officer of i-Tail Corporation PCL. “The company has gained the trust of major partners around the world, resulting in higher sales.”
Thai Union established i-Tail Corporation PCL in 2021. In January 2022, the company went on to establish i-Tail Americas, Inc., a western subsidiary of i-Tail Corporation PCL. i-Tail Americas is 100% owned by i-Tail Corporation PCL.
Thai Union’s premium pet food business offers owned brands including Marvo, Bellota, Paramount and Calico Bay, and exports to North America, Europe, Asia, Japan and Australia under private label brands, according to the company. The company can produce complete-and-balanced diets and supplementary nutrition products in several formats, including chubs, patented formed meat analogs called “Rockstar Chunks,” chunks in gravy, long treats, biscuits, jerky, semi-moist treats, loaf/pate, broths, mousse and others. Products can be packaged in sachets, pouches, aluminum or steel cans, and various tray and cup options.
The company leverages its human food supply chain to support the development of its pet food and treat products. It operates pet food manufacturing sites: US Pet Nutrition, LLC in Lyons, Ga.; Yueh Chyang Canned Food Co., Ltd. in Vietnam; Songkla Canning PCL in Thailand; and Thai Union Manufacturing Co., Ltd. in Thailand.
“i-Tail is committed to driving business to produce nutritious pet food with science and innovation that is more advanced than conventional food products,” Wongpiya added. “Through the creation of new products under the concept of pet humanization, pet food is upgraded to a premium food with pet's needs at the heart of the matter for the good health of our pets, our families and our planet.”
According to the Thai Pet Food Trade Association, Thailand became the world’s third largest pet food exporter in 2021, exporting a value of more than 65 billion baht ($1.7 billion USD), a 27% increase from 2020. The country’s top exporters include the United States, Japan, Italy, Malaysia and Australia. According to the association, Thai pet food exports have already witnessed significant growth for 2022, increasing 43% within the first seven months.
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