ThaiBev BeerCo Pre-IPO - Valuation Updates and Crystallizing Growth Potential for BeerCo
On 1st April, Thai Beverage (THBEV SP) announced it had received its conditional eligibility-to-list (ETL) letter from SGX-ST for its Proposed Spin-off Listing.Our updated valuation of BeerCo puts it at about SGD6.5bn. 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 unlisted equity valuation with an EV of SGD23bn.
We would be buyers in ThaiBev leading up to the IPO of BeerCo. ThaiBev benefits from an expensive BeerCo IPO and, hence, should continue to trade up as we get closer. Even if we assume our SGD6.5bn valuation, one could still get a 16% upside based on our valuation estimates.
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
ThaiBev BeerCo Pre-IPO - Thoughts on BeerCo valuation and ThaiBev HoldCo valuation
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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