'KCG Corporation Public Company Limited' or KCG, a leader in the production and distribution of butter, cheese, western food, and bakery ingredients sets the IPO price at 8.50 Baht per share which is open for subscription on July 20-21 and 24. The first trading day on the Stock Exchange of Thailand (SET) is expected to begin in early August. The executives continue to invest in increasing production capacity, modernizing production technology within the factory, constructing a new distribution center and warehouse, enhancing the Company's competitiveness, and ensuring its long-term stability, with the goal of becoming one of Thailand's largest producers and distributors of butter and cheese, as well as an importer of top-quality ready-to-eat products from around the world.

KCG Corporation Public Company Limited ("the Company" or "KCG") appoints Bualuang Securities Public Company Limited as the underwriter and appoints 3 additional securities companies to be the underwriters of KCG's initial public offering. These securities companies are Krungthai Xspring Securities Company Limited, Krungsri Securities Public Company Limited, and UOB Kay Hian Securities (Thailand) Public Company Limited.

Mr. Pichet Sithi-Amnuai, Managing Director of Bualuang Securities Public Company Limited, the financial advisor and underwriter, indicated that KCG has set the initial public offering (IPO) price at 8.50 Baht per share, with subscriptions beginning on July 20-21 and 24. Its first trading day on the Stock Exchange of Thailand (SET) is expected to be in early August under the abbreviation "KCG".

Currently, KCG has a paid-up capital of 390 million Baht, which is divided into 390 million ordinary shares with a par value of 1 Baht per share. The number of shares for the initial public offering is 155 million, or 28.4% of the total number of issued and paid-up ordinary shares after the issuance and offering of additional ordinary shares at this offering, which is equal to 545 million shares. As for the money raised from this fundraising, KCG will use this funds to build a distribution center and warehouse, expand production capacity, as well as improve production efficiency. The remaining funds will be used for financial institution loan repayment and working capital.

"KCG's IPO price is set at 8.50 Baht per share, based on the survey of institutional investors' book building. This price is deemed appropriate in light of the Company's solid fundamentals, investment plans, and future growth potential. KCG is a business that generates stable revenue due to its consistency with the urbanization expansion, the increased number of tourists, restaurants, and bakeries, and the growing popularity of Western cuisine, as well as a desire to care for one's health and enhance one's quality of life. Consequently, demand for cheese and butter products has increased, contributing to the expansion of western food consumption, Mr. Pichet stated.

Dr. Watit Tamavimok, CEO and Managing Director of KCG Corporation Public Company Limited, stated that the Company is a leader in the production and distribution of ready-to-eat products including butter, cheese, cookies, and various food and bakery ingredients. Additionally, the Company imports butter, cheese, bakery ingredients, and western foods from a variety of world-renowned brands. The Company's vision is to be "a leading provider of dairy products and gourmet foods, as well as a committed business partner for modern lifestyles" by providing savory products that create a delightful taste of quality food at every meal for consumers, as well as by sourcing raw materials and selecting leading brands from around the world in order to meet the lifestyles of consumers of all ages and genders, both domestically and internationally.

"Sourcing funds and listing on the stock exchange will allow KCG to increase its ability to introduce new products, innovations, and production capacity expansion, as well as construct the "KCG Logistics Park", a modern and fully integrated distribution center and the frozen and ambient warehouses to support domestic and international expansion. Dr. Watit stated that this will aid in the expansion of KCG's business, allowing it to become Thailand's leading producer and importer of butter, cheese, and top-quality ready-to-eat products.

In 2024, the production capacity at the Theparak Factory will increase to 23,261 tons per year from 18,592 tons per year. This includes

1) Investing in new machinery, renovating the clean room in Bang Phli Factory, and installing automated machinery and new technology which are expected to be completed in 2028 in order to increase the production efficiency of high-quality products, reduce production costs, and support growth. In addition, KCG has invested in the KCG Logistics Park, the construction and development of a distribution center and warehouse, in order to increase storage space and increase the efficiency of product management.

2) Develop new products and innovations. The Company appointed an innovation management team specifically for developing new innovations. The Company also introduced product groups with high sales and gross margins (SKU rationalization) to manage costs effectively as well as being committed to studying consumer behavior in order to develop or invest in diverse products and technologies that will increase future business opportunities.

3) Continuously create strong distribution channels for B2C customers. The Company intends to continuously expand product distribution channels via online platforms such as Lazada, Line Official, Freshket, Shopee, Pandamart, etc., as well as developing bakery and biscuit products for sale in BAO café stores, developing cheese and butter products to be sold in Lawson 108 convenience stores, and expanding the vending machine channel of business partners to approximately 2,500 vending machines throughout Thailand.

In addition, KCG enhances its services to B2B customers such as food service providers, hotel business operators, restaurants, HORECA, and food manufacturers through the provision of a full range of products on an online logistics service platform, with the development of Cold Chain Fulfillment system which is temperature-controlled transportation, aiming to support the transport of perishable goods and expand the customer base.

While planning to expand the international market through distributors, the Company is preparing to build on its leadership position in Thailand's food production and distribution. KCG intends to expand its operations in India, China, Indonesia, Japan, and South Korea, all of which are high-potential growth markets. Current export destinations include Japan, China, South Korea, Vietnam, Cambodia, Myanmar, India, the Philippines, etc. This includes expansion business plans for business partners and distributors in foreign countries such as Vietnam, etc. in order to expand the product distribution base and increase the product strength under the Company's brand. Our goal is to increase the proportion of export revenue to 10 % of total sales revenue by 2025.

4) Expand business through mergers and acquisitions by seeking to create growth both domestically and internationally through joint ventures or mergers and acquisitions (M&A), with a focus on businesses with goals, visions, and strategic plans that enhance KCG's growth potential, such as upstream businesses like producers of milk fat raw materials, cheese, palm oil, etc.

Mr. Thawatch Teeranusornkit, Senior Deputy Managing Director of KCG, stated that the Company has developed new products and innovations to create delightful tastes and convenience in every meal for consumers, in addition to sourcing raw materials and selecting leading brands from every corner of the world to meet the needs of consumers of all ages and genders in Thailand and abroad. KCG is the market leader for butter and cheese products in Thailand. It has a market share of 55.0% for butter products and 31.6% for cheese. It also has a market share in the top five for bakery and biscuit products (according to data from Euromonitor 2021).

Mrs. Kanokwanrat Srimanisiri, Deputy Managing Director of Accounting and Finance, KCG, stated that the Company's operating results between 2020 and 2022 were 4,950.0 million Baht, 5,265.0 million Baht, and 6,232.7 million Baht, respectively. Net income was 244.2 million Baht, 303.4 million Baht, and 241.1 million Baht, respectively. business-to-consumer (B2C) and business-to-business (B2B) sales, in addition to online sales growth, contributed to the Company's expansion. The Company's operating results for the first quarter of 2023 (January through March) show that the Company's total revenue was 1,723,3 million Baht and net income was 58.4 million Baht. Total revenue and net income increased by 30.6% and 81.4%, respectively, compared to the first three months of 2022, primarily as a result of increasing product sales and effective cost management.

The operating results in 2020-2022 and the first quarter of 2022 and 2023 (January-March) show that the Company’s sales revenue from milk products accounted for 58.4-60.6%, cookery, bakery, and other products accounted for 26.5-30.5%, and biscuit products accounted for 10.4-13.4% of sales revenue. If considering sales revenue by distribution channels, the Company’s income from business-to-consumer (B2C), business-to-business (B2B), and exports to foreign markets accounted for 53.9-59.4%, 36.7-41.5%, and 3.6-5.2% of sales revenue, respectively.