By P.R. Venkat


Thai Beverage PCL has decided to resume listing its brewery unit in Singapore as part of efforts to improve its financial position and pare down debt.

The company is planning to sell a 20% stake in BeerCo Ltd. and has received a no-objection letter from the Singapore Exchange, Thai Beverage said Thursday.

Thai Beverage had deferred the IPO of its brewery unit last year citing Covid-19 situation. The plans to revive the public offering is also at a time when global markets remain volatile and investor sentiment is weak due to rising inflation and worries over global economic recovery.

An offering, if successful, will be one of the biggest listings in Singapore in many years, likely raising more than US$1 billion, people familiar with the IPO plans had said earlier.

The IPO will strengthen ThaiBev financially and increase the parent company's ability to invest in future business expansion, the company said Thursday.

"As a separately-listed entity, BeerCo will have direct access to debt and equity capital markets and be able to independently leverage on a wider range of funding options to finance its existing operations as well as its future business expansion plans," it said.

ThaiBev owns Thailand's Chang beer brand, as well as a majority stake in Vietnam brewer Saigon Beer Alcohol Beverage Corp., known as Sabeco.

For the fiscal year ended September 2021, the beer company had posted revenue of 4.21 billion Singapore dollars (US$3.06 billion).


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

05-04-22 1856ET