ThaiBev BeerCo Pre-IPO - Thoughts on BeerCo valuation and ThaiBev HoldCo valuation
Thai Beverage (THBEV SP) announced that it received a no-objection letter for the proposed spinoff of BeerCo from SGX-ST on 5th February, 2021.Our valuation of BeerCo puts it at about SGD6.67bn. ThaiBev’s total listed company investments sum up to about SGD8.8bn with BeerCo making up for the bulk of it. Spirits accounted for the bulk of valuation with an EV of SGD23bn.
We think that the split of BeerCo allows investors to clearly choose which businesses they want exposure to. Spirits segment could get re-rated higher considering that street consensus usually pegged its valuation at mid teens EV/EBITDA even though it has been the more resilient segment.
In this note, we will look at the valuation of BeerCo and ThaiBev Holdco.
We have previously shared early thoughts on the spin-off in:
ThaiBev Beer Brewery Pre-IPO Spin-Off - Early Take - Aiming to build an ASEAN champion
ThaiBev Beer Brewery Pre-IPO Spin-Off - Valuation Estimation and Implications
ThaiBev BeerCo Pre-IPO - Declining rev and mkt share concerns but good cost control
Thai Beverage Public Company is engaged in the production and distribution of alcoholic and non-alcoholic beverages, as well as the operation of Japanese restaurants. Co.'s business consists of four segments: spirits, beer, non-alcohol beverages and food. The spirits segment is engaged in the production and sales of branded spirits products. The beer segment is engaged in the production and sales of branded beer products. The non-alcoholic beverages segment involves the production and sales of branded water, soda, ready-to-drink coffee, energy drink, green tea and fruit juice flavour. The food segment includes Japanese restaurants, bakery shops and distribution of food and beverage.
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
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