Charoen Pokphand may raise US$1 billion in Bangkok from IPO of its feed, seed businesses

A share sale could raise US$600 million to US$1 billion depending on market conditions, sources say

Should a transaction proceed, CP Group’s unit would be joining SCG Chemicals and Big C Supercenter in seeking a listing on the Bangkok bourse

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The dumpling production line at a Charoen Pokphand Group facility in Qinhuangdao of Hebei province on October 28, 2016. Photo: Bloomberg

Published: 2:33pm, 16 Mar 2023Updated: 2:44pm, 16 Mar 2023

Charoen Pokphand Group is exploring an initial public offering of its seed and animal feed business in Thailand that could raise as much as US$1 billion, according to people with knowledge of the matter.

The Thai conglomerate is restructuring its upstream agricultural operations to prepare for the potential spin-off, which could include animal feed and seed businesses under Charoen Pokphand Foods and Chia Tai, the people said. CP Group has held initial discussions with prospective advisers on the listing, which could happen as soon as next year, the people said. A share sale could raise US$600 million to US$1 billion depending on market conditions, they added.

Should a transaction proceed, CP Group’s unit would be joining SCG Chemicals and Big C Supercenter in seeking a listing on the Bangkok bourse. The Southeast Asian nation has seen a drop in IPO activity this year with only US$291 million raised through first-time share sales, down from US$544 million in the same period last year, according to data compiled by Bloomberg.

Considerations are at an early stage and details of the IPO including size and timeline could still change, the people said. A representative for CP Group declined to comment.

CP Group is controlled by the Chearavanont family, which is Asia’s fifth-richest family with a net worth of US$28.2 billion, according to the Bloomberg Billionaires Index. Dhanin Chearavanont, who has a net worth of US$4.3 billion, is the biggest shareholder and senior chairman of CP Group, which has interests in agriculture, food, retail and telecommunications.