PSP Specialties plans IPO on Thai stock exchange for growth boost

Thailand’s leading lubricant producer, PSP Specialties Plc, is preparing for an initial public offering (IPO) to boost its business growth. The company plans to offer 350 million shares, approximately 25% of its total shares, on the Stock Exchange of Thailand. The price per share is yet to be determined, with a roadshow in the works to promote the company.

CGS CIMB Securities (Thailand) is handling the underwriting process for the listing. The CEO of PSP Specialties, Sint Krongphanich, stated that part of the funds raised through the PSP Specialties IPO would be used to repay debt incurred following the acquisition of UC Marketing Co, a distributor and seller of raw materials and goods. Additionally, funds will be allocated to short-term debt payments and enhancing the company’s production efficiency.

PSP Specialties’ IPO remaining budget will serve as working capital. The company’s annual production capacity includes 212 million litres of lubricant, 27,500 tonnes of grease, 44 million litres of rubber process oil, and 25 million litres of transformer oil. Located in Samut Sakhon province near the Tha Chin River, PSP Specialties also operates a factory in the Thilawa Special Economic Zone on the outskirts of Myanmar’s capital, Yangon.

According to PSP Specialties IPO, more than 95% of its revenue stems from producing and selling raw materials like lube oil and grease. The remaining 5% is generated from developing lube oil products and offering logistics services. In the previous year, the company noted a 22% revenue increase, reaching 13.2 billion baht from 10.7 billion baht in 2021 and 6.9 billion baht in 2020. The first quarter of this year saw an additional 0.4% increase in revenue, amounting to 3.08 billion baht, reports Bangkok Post.

Sint Krongphanich mentioned that the company aims to focus on lube oil solution services and maintain its position as an original equipment manufacturer. Rather than creating a new brand to market lube oil, PSP Specialties wants to avoid competing with its existing customers.

Additionally, the company has expanded into e-commerce, offering auto parts for sale.