Makro expects big investment funds to move in

Thailand’s leading wholesale and hypermarket operator Siam Makro Plc, is waiting for big investment funds to move in as company stock heads for a one-year high. Shares are now mature enough to attract the attention of global fund managers.

Makro wants to be the biggest operation of its kind in Asia. In many parts of Thailand, Makro cash and carry stores – anyone can shop there – have enormous social and shopping effects, bringing such quality and variety of food that shoppers – especially tourism operators – quickly become dependent on the store. The pandemic served to strengthen the company’s position with high-profile prevention and control methods.

Shares have risen by over 20% in the past three months and about 15% in the past month alone. Now at 43 baht (US$1.30) a piece, that puts the 456 billion baht (US$13.5 billion) market cap on the menu for global investment funds to move in for a slice of Makro’s fresh-baked pie.

To top this off, Makro expects to see better retail sales, especially in Lotus. Increased tourism means increased HoReCa business (hotels, restaurants, catering), Makro’s main customer base. The reopening of hotels and restaurants will benefit the company greatly.

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Saowaluck Thithapant, Group Chief Executive Officer, revealed that since the Lotus acquisition, there has been an increase in the number of small shareholders (free float).

Makro expects big investment funds to move in | News by Thaiger

Mrs Saowaluck Thithapant, Group Chief Executive Officer, Makro Business.

Saowaluck said that today minority shareholders control more than 15% of the company. This means Makro stock will be calculated into key indices, something that helps fund managers participate, especially overseas institutional investors.

As for 2023 Saowaluck said that the outlook is good. Makro expects to see continuous growth in brick-and-mortar stores and the development of online platforms. After the merger of Makro and Lotus, Makro has become a leader in the wholesale and retail business.

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Offering more than just fresh veggies, Makro expects big investment funds to move in soon.

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Jon Whitman

Jon Whitman is a seasoned journalist and author who has been living and working in Asia for more than two decades. Born and raised in Glasgow, Scotland, Jon has been at the forefront of some of the most important stories coming out of China in the past decade. After a long and successful career in East sia, Jon is now semi-retired and living in the Outer Hebrides. He continues to write and is an avid traveller and photographer, documenting his experiences across the world.

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