PSP Specialties debuts on Thailand's Stock Exchange
Photo courtesy of PSP Specialties

PSP Specialties debuts on Thailand’s Stock Exchange

P.S.P. Specialties PCL, the largest lubricant toll blender in the ASEAN region, marked its first trading day on the Stock Exchange of Thailand (SET) on August 30. With a market capitalization of THB16.8 billion (USD479.5 million), the stock closed on Friday, September 1 at THB12 (USD0.34). Its ticker symbol is PSP.

In June, the company based in Bangkok, Thailand, announced its plan to sell 350 million shares, or around 25% of its total shares. The company has 1.4 billion outstanding shares. The proceeds from the initial public offering (IPO) would be used to re-pay debt, after the acquisition of UC Marketing Co., a raw material and goods distributor. UC Marketing is the Thai distributor of U.S.-based petroleum additives manufacturer Chevron Oronite. The rest of the proceeds would be used as working capital, repay short-term debts and improve its production efficiency. P.S.P.’s debt-to-assets ratio is 62.83%, according to Bloomberg.

Sint Krongphanich, CEO of P.S.P. Specialties, highlighted the company’s debut on the SET. As Thailand’s largest independent lubricant manufacturer, P.S.P. holds a significant market share across various lubricant product groups. P.S.P. Specialties currently produces 212 million litres of lubricants, 27,500 tonnes of lubricating greases, 44 million litres of rubber process oils, and 25 million litres of transformer oils a year. Its production facility and distribution centre is located near the The Chin River in Samut Sakhon province. The company also operates a factory in Myanmar’s Thilawa Special Economic Zone, which is located on the outskirts of Yangon.

According to P.S.P. Specialties, more than 95% of its revenue comes from the production and sale of raw materials, while the remaining 5% comes from the development of lube oil products and logistics. The company’s services encompass the entire lubricant industry supply chain, backed by state-of-the-art laboratories.

P.S.P. is currently researching lubricants and fluids tailored for electric vehicles (EVs), including transmission oils, battery coolant products, and bio-transformer oils. The company is also looking into lubricant solutions for the food industry.

Last year, the company saw its revenue grow by 22% to THB13.2 billion (USD376.7 million), up from THB10.7 billion (USD305.3 million) in 2021 and THB6.9 billion (USD196.9 million) in 2020.

With a focus on cost management and operational efficiency, P.S.P. aims to fortify its position in the ASEAN lubricant market. Investments in production process enhancements and automation are underway to bolster its global competitiveness. By 2026, the company aspires to derive 25% of its total sales revenue from international markets.

Veeraya Sriwattana, head of Investment Banking at CGS-CIMB Securities (Thailand) Co. Ltd., lauded P.S.P.’s robust business foundation and its reputation in the lubricant industry. The company’s commitment to research and development, coupled with efficient production management, positions it for sustained growth.

Pongsak Phrukpaisal, managing director at Kasikorn Securities Public Co. Ltd., emphasised P.S.P.’s growth potential, stemming from strategic investments that integrate the entire lubricants supply chain.