Buriram Sugar files US$112 million IPO for infrastructure unit

Tue Jun 13, 2017 - 8:50am GMT+0000
Buriram Sugar files US$112 million IPO for investment unit

Buriram Sugar Public Company Limited, a Thailand-based company that engages in sugar production and downstream businesses has recently applied to take a biomass power plant investment unit public.

Bualuang Securities will act as the fund’s manager while Maybank Kim Eng Securities (Thailand) has been appointed as the financial advisor.

The SET-listed company expects to raise up to 3.85 billion baht (about US$111.65 million) through issuing 350 million investment units of its infrastructure vehicle – Buriram Sugar Group Power Plant Infrastructure Fund (BRRGIF).

According to the filing, 115.5 million IPO investment units will be offered to the public and a maximum amount of 45.5 million units will be available to the company’s shareholders as part of their pre-emptive rights.

Anant Tangtongwechakit, the managing director of Buriram Sugar said that proceeds from the listing will go towards expanding the biomass power plant operation of its subsidiaries Buriram Energy Co Ltd (BEC) and Buriram Power Co Ltd (BPC).

The move comes as a strategic investment because the power plants at BEC and BPC with an electricity production of 9.9 megawatts each have recently signed a contract to sell up to 8 megawatts of electricity to the Provincial Electricity Authority.

Besides, both power plants adopt a co-generation technology, which uses sugarcane waste to co-produce electricity and steam which can be sold back to the sugar plant.

Meanwhile, Buriram Sugar consist of four principal business operations, that includes the manufacturing and distribution of sugar; manufacturing of fertilizers from sugar waste and by-products, the power plant for electricity generation; and power for sale.

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Vivian Foo is a reporter who writes about Southeast Asia’s technology and startup space. The entry point which led her to write about the startup ecosystem was her fascination of the dot-com boom. She is taking a deep dive into how the entrepreneurial mindset works and hopes to share the insights, innovation, and stories of the startups with her readers.