SRI Trang Sri Trang Agro-Industry Pcl shares fell the most since August 2005 in Bangkok trading after saying it will sell stock in Singapore at $1.20 a share.The stock fell as much as 16% to 31 baht as of 11:31 a.m. local time.The Thai stock exchange suspended trading in rubber producer Sri Trang Agro-Industry yesterday ahead of the pricing of a Singapore initial pubic offering (IPO), which has depressed its share price in Bangkok.The company said it planned to use the proceeds from its new share offer to acquire and build processing facilities, pursue acquisitions and for working capital.
Sri Trang will continue to trade on the Thai bourse, where it has been listed since August 1991. It primarily makes blocked rubber for tyres and counts Bridgestone Corp.
The world’s largest processor of natural rubber is expected to raise up to S$360 million through its listing on the Singapore exchange. Singapore is a big centre for rubber trading and the company already has a subsidiary there.Thailand’s largest publicly traded rubber maker initially announced plans for a dual listing last May and it was scheduled for September but global market uncertainties caused a delay.Since the latest Singapore listing plan was announced on Jan 13, Sri Trang shares have dropped 10 per cent from around 41 baht to 36.75 baht on Friday as some investors expected the IPO price to undercut the Bangkok price.
The company, currently valued at US$1.2 billion on the Thai bourse, has said that it would offer 280 million shares at a maximum offer price of S$1.60. Its closing price in Bangkok on Friday is equivalent to about S$1.53.The company said that it planned to use the proceeds from its new share offer to acquire and build processing facilities, pursue acquisitions and for working capital.Sri Trang will continue to trade on the Thai bourse, where it has been listed since August 1991. It primarily makes blocked rubber for tyres and counts Bridgestone Corp, Michelin and Goodyear Tire & Rubber among its big buyers.
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