Results (
Thai) 1:
[Copy]Copied!
Thai Foods Group Plc (TFG) has become the first company to delay plans to go public after the recent sell-off in Thai shares triggered by Monday night's deadly bomb blast in central Bangkok.The company and financial adviser KT Zmico Securities agree the initial public offering (IPO) should be postponed due to the present unfavourable stock market sentiment, chairman Winai Teawsomboonkit said in a statement.He said TFG would resume its listing plan as soon as sentiment turns positive again.The company is an integrated livestock processor and animal-feed maker with operations in Thailand and Vietnam.It had planned to issue 1.4 billion IPO shares to the public later this month in seeking a listing on the Stock Exchange of Thailand (SET).Proceeds would be used to expand its livestock and animal feed mill businesses, repay some debt to lower its financial costs and as working capital.But the broader SET index sank below the psychological 1,400-point level on Tuesday in a knee-jerk reaction to the bomb blast that killed 20 people and wounded 125 -- many of them foreigners -- at the Erawan Shrine in the heart of Bangkok's commercial shopping district.The explosion is expected to take a toll on the tourism sector, which has been one of the few bright spots supporting economic growth.Thai shares have dropped by 8% year-to-date, weighed down largely by the country's gloomy economic outlook, lower exports, China's economic slowdown and prospects of a rate reversal this year by the US Federal Reserve."We feel present sentiment is unfavourable for seeking a listing on the SET, but the company will monitor and assess the situation," Mr Winai said."While waiting for sentiment to improve, we'll strengthen our business, and we believe our IPO will definitely catch investors' interest."The company earlier estimated it would plunge into a net loss this year.
Being translated, please wait..
