Emperador and Thai Beverage have won pre-marketing share sales for as much as $1.2bn, this has cheered Singapore’s equity capital. Previously, Thai Beverage’s Singapore region beer Beerco launched $1bn pre-marketing on Singapore Exchange IPO and Emperador. This is the Philippines number one liquor company. The secondary listing has gathered around $216m. However, the final size relies on the investors’ feedback.
The banking activities have improved a lot since the region has launched easier restrictions on Covid-related travel and movement. South Asia alcohol consumption also improved a lot. This time the volume of consumption increased by 1.6% since 2021. Previously, it declined by almost 11% a year before in 2020. This is based on the data by IWSR Drinks Market Analysis. Based on the research forecast, alcohol consumption would improve by 4% this year.
IWSR attempts to leverage the growth by 3.5% in Singapore because of the sharp decline in the previous year. South Asia alcohol consumption decline covers 1.1% in Thailand, 1.5% in Vietnam and 9.8% in Philippines. ECM bankers argue that when REIT sectors are weakening, alcohol companies won the sectors. Singapore capital equity on the SPAC IPO was also weakening.
Issuers seem to play safe as they continue the deal but reduce the size. BeerCo’s IPO for instance has reduced less than 20% of the capital. It targets market capitalization for as much as $5bn-$7bn. This is below $10bn from the last year target, said the banker close to the deal. This is the reason why many companies put their IPO on hold due to the bad market situation. Aequitas Research head argued that Covid-19 led the business in a huge swing. The market is slowing down from the $1.2bn.