HONG KONG (Reuters) - The $1 billion initial public offering (IPO) of Thailand’s Siam Cement Group Pcl’s (SCG) (SCC.BK) packaging business has been shelved with global financial markets roiled by the coronavirus epidemic, two sources with direct knowledge of the matter said.
The Bangkok-listed company had planned to launch an initial public offering (IPO) of the subsidiary in the first half of 2020, but the deal has now been delayed until equity markets become more stable, according to the sources.
The people could not be named as the information has not yet been made public.
“With travel restrictions, volatile financial markets, and the COVID-19 measures, SCG Packaging continues to monitor the IPO timeline,” an SCG spokeswoman told Reuters.
The SCG Packaging float was to have been the second largest capital markets deal in Thailand this year, following Central Retail’s February IPO which raised $2.5 billion.
In October, SCG, which is Thailand’s largest industrial conglomerate said it would remain the packaging business’s largest shareholder with a 70% ownership stake with the remainder to be floated.
The conglomerate’s chief executive Roongrote Rangsiyopas said in October the proceeds of the capital raising would be used to fund the company’s domestic and international expansion plans.
A time table for when the IPO could be resurrected has not yet been set, according to the sources.
Reporting by Scott Murdoch and Chayut Setboonsarng; additional reporting Anshuman Daga; Editing by Kirsten Donovan