Do Day Dream Plc (DDD), the maker and distributor of Snail White skincare products, has set its initial public offering at 53 baht a share, making it the priciest IPO of the year.
The IPO shares have a par value of one baht each, with 76 million IPO shares on offer for investor subscription today. Trading is scheduled to commence on Dec 26.
The company's market capitalisation is valued at 4.03 billion baht.
Funds raised from the IPO will be used to expand the company's production capacity and distribution channels, along with improving its operations and R&D know-how, said chief executive Sarawat Pornpatanarak.
The company aims to become the market leader in cosmetic products within five years by doubling its production capacity, Mr Sarawat said.
DDD plans to expand its business growth both in the domestic and overseas markets, especially Asian markets, he said, adding that the company's facial skin care products are among the market leaders available through modern trade channels.
"DDD is a high-growth stock and we have a plan to expand our business in Thailand and overseas," he said. "The IPO price reflects current stock market conditions as well as the quality of institutional and retail investors who have expressed interest in DDD stock."
Sales revenue from domestic and overseas markets is at 64% and 36%, respectively, but the contribution is expected to be equal over the next five years, Mr Sarawat said.
The company plans to build a new factory next year, due to be completed in 2019. Product capacity will increase twofold from 1.9 million litres to 4 million litres.
Mr Sarawat said the company will increase product lines in modern trade channels such as 7-Eleven, and will sell high-quality products at convenience stores, where they are the highest growth channel for sales of consumer products.
The company will also increase promotions via online shopping for the Chinese market, he added.
DDD has a market share of around 4% and ranks eighth in the cosmetics industry.
The company reported 1.26 billion baht in total revenue for the first nine months, up 27.6% year-on-year from 985.4 million baht in last year's corresponding period.
Oversea sales revenue growth in this nine month period was logged at 457.9 million baht, a significant increase from 115.9 million baht in the same period last year.
Net profit for the first nine months was at 253.5 million baht, a slight drop from 278.8 million baht in the same period last year. This was a result of increasing marketing and promotion expenses related to a series of eight new products launched in the beginning of this year, compared to only one product in 2016.
The company has appointed Bualuang Securities Plc as its lead underwriter. BLS president Pichet Sithi-Amnuai said DDD shares are in a high-growth sector where the industry has a price-to-earnings above 50 times, with institutional investors subscribing to 18 times of the company's shares.