Asia Biomass Public Company Limited’s $4.3 Million Initial Public Offering


Hunton & Williams assisted Asia Biomass Public Company Limited (SET:ABM), Thailand’s largest biomass feedstock producer, in the issuance and listing of 75 million newly issued shares equivalent to 25 per cent of its total registered capital on the Market of Alternative Investment (MAI).

The entire newly issued shares were allocated to the general public via an Initial Public Offering (IPO) at THB 1.80 each and THB 135 million in total, from February 19 to 21, 2018. The first day of trading was February 27, 2018.

Sage Capital Limited acted as issuer’s financial advisor and KGI Securities (Thailand) PLC acted as the lead underwriter.

ABM, led by

Thiyada Kuansataporn, Natchapapha Kuansataporn and Pongtham Danwungderm, supplies a variety of biomass fuels such as palm kernel shells, woodchips, wood shavings, sawdust, wood dust and biomass pellets, etc. to customers that use biomass fuel in the production process including industrial plants, power production plants, wood product manufacturers, and biomass suppliers domestically and in Korea and Japan. The company has eight warehouses, four in Thailand and the other four in Malaysia and Indonesia. Transportation services are carried out by its subsidiary’s trucks to ensure efficient logistics.

The fund raised will help ABM acquire more land to increase its capacity to stock palm shells in Indonesia and Malaysia. Some of the proceeds will go toward the joint venture with Fancywood Industries PLC (SET:FANCY), the largest manufacturer of rubber wood furniture in Thailand, to establish a biomass pellet factory in Surat Thani province, Thailand.

As issuer’s counsel, the Hunton team counseled ABM in relation to the IPO offering process pursuant to the rules and regulations of the Public Limited Company Act as well as those of the Securities and Exchange Commission and the Stock Exchange of Thailand.

Hunton & Williams advised with a team including Yaowarote Klinboon (picture), and associates Teerasak Petchpaibool and Phatamol Phisitbuntoon.

Involved fees earner: Teerasak Petchpaibool – Hunton & Williams LLP; Yaowarote Klinboon – Hunton & Williams LLP; Phatamol Phisitbuntoon – Hunton & Williams LLP;

Law Firms: Hunton & Williams LLP;

Clients: Asia Biomass Public Company Limited;

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Author: Michael Patrini