Kerry Logistics Network has completed the spin-off of its subsidiary, Kerry Express Thailand (KETH), which commenced trading on the Stock Exchange of Thailand (‘SET’) on 24 December.
The price of KETH’s initial public offering of 300 million shares was fixed at the upper limit of THB28 (US$0.93) per share. KETH, which remains a subsidiary of Kerry Logistics Network after the spin-off, had received very strong investor interest with more than 23 times oversubscription from institutional investors and approximately 10 times oversubscription from cornerstone investors, according to a statement.
KETH intends to use the proceeds from the offering to expand its express delivery network and invest in its transportation network. It aims to enhance its operational efficiency, in the development of Information Technology (IT) systems, the repayment of existing indebtedness to banks and as working capital for business operations.
"KETH’s listing on the SET is an important milestone for the company," underlined Alex Ng, Kerry Express Thailand CEO, who added, "The proceeds from the offering will ensure KETH’s continual growth and thriving future as we further strengthen our infrastructure and enhance our operations."
In 2019, KETH delivered an average of 1.1 million parcels per business day to offices, warehouses, retail shops and households in Thailand and it was recognised as Thailand’s Most Admired Brand 2020 by marketing magazine Brand Age.