THAILAND – SCG Packaging, a Thailand based packaging solutions provider to the food industry, is set to file for an initial public offering on a local bourse that could see the company raise about US$1 billion.

SCG Packaging, a subsidiary of the country’s largest industrial conglomerate, Siam, intends to use the proceeds to independently strengthen the company’s funding needs as it charts out a regional expansion strategy.

According to a Reuters report, the company is expected to file for an IPO in December and launch the issue in the first half of 2020. Up to 30% of SCG Packaging’s shares will be offered in the initial public offering and Siam will remain the controlling shareholder with at least a 70% stake.

SCG Packaging has enjoyed strong business growth in the recent past since its rebranding from SCG Paper to SCG Packaging in June 2015.

In 2018, the company reported a 7% growth in sales to US$2.88 billion while profits and profit shot 37% to 6 billon baht (US$200m).

This year, the company said it will continue to seek new opportunities to expand the business, aiming to establish production units all across the country and ASEAN to support customers’ business growth.

In March, Packaging Business SCG, announced its 2019 business direction with key strategies to drive business growth with the aim to become the Total Packaging Solutions Provider by establishing more packaging production bases.

In May, SCG acquired a 55% stake in Indonesian paper packaging company, PT Fajar Surya Wisesa Tbk from existing shareholders for US$665 million.

SCG, Fest Food Safety Packaging, together with other 9 partnerships have also signed an agreement with to launch a project that seeks to support the use of food safety packaging and environmental-caretaking activities to achieve the sustainable growth in Thai society.

The partners in the project include Siam Makro, Central Food Retail, SookSiam, S&P Syndicate, Boon Tong Kee, Zen Corporation, Tanapattana Thaifood, Khon Kaen University, and the University of the Thai Chamber of Commerce.

SCG Packaging has also opened a packaging line in Vietnam with plans to expand the business and to develop new innovative packaging products to serve better domestic market as the company aims to strengthen its leadership in ASEAN with Hybrid Technology for Future Packaging.

Last year, the company through its wholly owned subsidiary, SCGP Solutions (Singapore) acquired 68.3% stake in Malaysia’s Interpress Printers Sendirian Berhad for US$26.5 million.