PQS opened for trading on the first day at 14.00 baht, an increase of 8.00 baht or +133.33% from the IPO price of 6.00 baht.
Finansia Syrus Securities (distributor) stated that Premier Quality Starch Public Company Limited (PQS) is a major producer and distributor of tapioca starch. The proportion of exports is 76% and most of them are China. Premium products, 2022 profit expected ?4% yy due to COVID-19 situation in China, but expected to grow +13% yy in 2023
The proceeds from the IPO will be used to build a tapioca starch factory to double its production capacity. Expected to start recognizing revenue in 2024 with a target price of 12 baht.
Mr. Somyot Chanchuengthavorn, Chairman of the Board of PQS, revealed that PQS stocks were warmly welcomed by investors. Because this fundraising will be used to build a tapioca starch factory to support the increasing demand of the food market. The company is ready to move forward with continuous development. To aim for growth in the business of selling and distributing tapioca starch and other processing industries that are not related to food Including the sale of electricity from biogas in the factory. and sold to the Provincial Electricity Authority Strong and sustainable and aiming to become a leader in the tapioca industry in ASEAN
Rathwirun Chanchuengthavorn, Chief Executive Officer of PQS, said that the expansion of the new factory will increase the overall production volume of cassava to 360,000 tons per year from the current 240,000 tons per year. In addition, PQS is also studying investment plans. New additions, focusing on expanding the biogas production and distribution business and will focus on effective cost management To maintain the growth rate of PQS earnings at a good level.
The results for the past 3 years (62-64) have an income of 1,255.70 million baht, 1,282.05 million baht and 2,254.03 million baht respectively, while the net profit is 66.75 million baht, 82.09 million baht and 313.82 million baht respectively. 9 months with an income of 1,757.57 million baht and a net profit of 211.36 million baht. The main income still comes from the business of selling and distributing premium grade tapioca starch. It will expand into foreign markets in addition to the current main market, China.
Mr. Seksan Thanapachai, Chief Executive Officer of Fin Plus Advisory Co., Ltd. as financial adviser to PQS, said PQS stocks opened impressively today. In addition to being a company with high business growth potential also received good support from investors
While the money raised from the funding will be used to expand the business according to the company’s guidelines, especially the investment in the new factory will support PQS to increase its production capacity of tapioca starch by 70% and will support the operating results. Overall increased in the same direction. The new factory of PQS will be completed in 2023 and will officially start production in 2024, which will make the turnover grow exponentially.
