Kerry Logistics Network Limited has announced that it has completed the spin-off of its subsidiary, Kerry Express Thailand, which commenced trading on the Stock Exchange of Thailand today. KETH remains a subsidiary of Kerry Logistics Network after the spin-off.
The price of KETH’s initial public offering of 300 million shares was fixed at the upper limit of THB 28 per share. KETH had received very strong investor interest with more than 23 times oversubscription from institutional investors and approximately 10 times oversubscription from cornerstone investors.
The proceeds from the offering are intended to be used for KETH’s express delivery network expansion and investments in its transportation network to enhance its operational efficiency, in the development of IT systems, the repayment of existing indebtedness to banks and as working capital for business operations.
“We are very proud of this successful spin-off and listing, and the enthusiastic reception from investors,” commented William Ma, Group Managing Director of Kerry Logistics Network. “KETH is now a true Thai company that belongs to the Thai people to serve the Thai population. Kerry Logistics Network has nurtured KETH’s growth through the years and has been encouraged by how it has prospered. By now, Kerry Express Thailand has become a byword for excellence in delivery service in Thailand. With the leadership of an outstanding management team and capital from the listing, we are confident that KETH’s future triumphs will reach new heights and be the standard to which all are measured.”
Alex Ng, Chief Executive Officer of Kerry Express Thailand, added: “KETH’s listing on the SET is an important milestone for the company and the culmination of the KETH team’s hard work. We are truly grateful for the support of our investors, which in itself is a testament to KETH’s current achievements and brilliant prospects. The proceeds from the offering will ensure KETH’s continual growth and thriving future as we further strengthen our infrastructure and enhance our operations to provide our customers the best service to our ability and create value for our stakeholders.”
Since its establishment in 2006, KETH has become an indispensable part of Thai life. In 2019, KETH delivered an average of 1.1 million parcels per business day to offices, warehouses, retail shops and households in Thailand. It was recognised as Thailand’s Most Admired Brand 2020 by marketing magazine Brand Age. During the COVID-19 pandemic, KETH was deemed one of the essential services by the Thai government, exempt from mandatory closure, and played a key role in supporting businesses and consumers in Thailand in these unprecedented times.
