TOA Paint (Thailand) Public Company Limited (“TOA”), the leading manufacturer of decorative paint and coating products in Thailand, has its first trading day of its shares on the Stock Exchange of Thailand today. TOA has the plan to expand new three production plants in Indonesia and Myanmar which are under construction, and in Cambodia which is in project feasibility phase. All of these new three production plants are expected to commence their commercial operation in 2018, which will increase TOA production capacity from 88.0 million gallons annually (excluding TOA Skim Coat (Cambodia) Co., Ltd.) to 102.5 million gallons annually. TOA also expects to increase its market share in order to be the leader in the ASEAN paint markets.
Mr. Jatuphat Tangkaravakoon, Chief Executive Officer of TOA, the leading manufacturer of decorative paint and coating products in Thailand, revealed that today (10 October 2017) is TOA's shares first trading day on the Stock Exchange of Thailand (ticker symbol: TOA). He expressed confidence that the shares will attract the investors who believe in TOA's fundamentals and potential to expand its business both at domestic level and international level, like it attracted institutional investors and retail investors during the initial public offering (IPO) of 507.6 million shares issued by TOA and by TOA’s existing shareholder at the price of THB 24.0 per share, at the par value of THB 1.0 each.
TOA is the largest retail decorative paint and coating manufacturers in Thailand based on sales revenue. According to Frost & Sullivan (S) Pte Ltd, in 2016, TOA had approximately 48.7% market share in Thailand, and approximately 13.0% market share in the AEC. Seeking to achieve continuous growths with the aim of becoming the leading manufacturer of decorative paint and coating products in ASEAN, TOA is investing in the construction and in the process of studying project feasibility in three overseas countries with the estimated investment of approximately THB1,184 million, which includes; the first production plant in Indonesia, the production plant in Myanmar which is being relocated from Yangon to the Thilawa Special Economic Zone, and the production plant in Cambodia. The three production plants are expected to commence their commercial operation in the second quarter, the third quarter, and the fourth quarter of 2018, respectively. Once the construction of these three new production plants is completed and the planned shutdown of existing Yangon Plant is proceeded (which is expected to be at the beginning of 2019), it is expected that TOA’s total production capacity will increase to 102.5 million gallons annually from currently 88.0 million gallons annually (excluding TOA Skim Coat (Cambodia) Co.,Ltd.) from eight production plants in six countries, with three production plants located in Thailand and one production plant in each of Vietnam, Laos, Malaysia, Myanmar and Cambodia. "Completion of the construction and commencement of commercial operation of new three production plants will help us achieve the target to increase our market share in paint and coating markets in overseas countries, especially Indonesian market, that TOA has entered five or six years ago. Indonesia market is regarded as a large market with high growth potential due to the population of more than 250 million. It is also an opportunity to enhance our sales of premium paint and coating products. Myanmar and Cambodia markets also have high growth potential due to their positive economic growths and high level of foreign investments" Mr. Jatuphat said.
Mr. Pichet Sithi-Amnuai, President of Bualuang Securities Public Company Limited, as a Financial Advisor and Joint Lead Underwriter, stated that TOA is the Thai-owned paint company that dominates the highest market share in Thailand among competition with foreign manufacturers, with the competitive strengths in respect of brand recognition, ability to research and develop a diversified portfolio of products to cater customer needs, extensive distribution network, and experienced management team and workforce. Success in fundraising on the Stock Exchange of Thailand will help increase TOA’s operating capacity and strengthen its financial position, as well as result in a positive effect on its business expansion in ASEAN.
Mr. Manpong Senanarong, Managing Director, Kasikorn Securities Public Company Limited, as another Financial Advisor and Joint Lead Underwriter, added that TOA, a leading manufacturer and supplier of decorative paint and coating products in Thailand, has great potential and has clear strategies to expand its business from the local base in Thailand to ASEAN, which is a high potential market with strong growth trend of demand for paint and coating products due to supporting factors such as construction industries and infrastructure investments. Thus, he believes that TOA’s share will be one of the shares that well-attract investors’ attention.