CGS-CIMB Research has reiterated its “add” rating for Thai Beverage (ThaiBev) considering the beverage manufacturer’s plan to list its beer business.

The brokerage believes the proposed IPO could rerate the stock.

“Looking back at 2019, when news first emerged, the stock traded up to 93.5 cents,” CGS-CIMB analyst Cezzane See writes in a note dated Feb 5.

As at 11 am, ThaiBev was down 1 cent or 1.2% at 83 cents with 25.6 million shares changed hands.

The brokerage reckons the IPO could lift its target price for the stock to $1.18 from 87 cents previously.


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For now, though, CGS-CIMB has incrementally raised its target price for the stock to 87.2 cents.

“We await further details on the deal before making any changes to our forecasts and target price,” says See.

On Feb 5, ThaiBev announced the proposed listing of BeerCo, which will hold its Thai beer business and Saigon Alcohol Beer and Beverage Joint Stock Corp (Sabeco).

Up to 20% of the total number of shares in BeerCo will be included in the IPO, which could value it to about US$10 billion.

According to CGS-CIMB, the successful listing of BeerCo could pare down ThaiBev’s debt at the group level.