BBGI Plc, the biotechnology arm of Bangchak Corporation Plc, remains confident about its business expansion plan, supported by ongoing fundraising under the company's initial public offering (IPO) programme that began yesterday.
The price of BBGI opened at 10.1 baht per share in the morning, which was 3.8% lower than the subscription price of 10.5 baht. The price improved to reach 10.5 baht in late afternoon trading.
Kittiphong Limsuwannarot, chief executive of BBGI, said the company is determined to become a leader in developing new products based on sophisticated technologies.
The company expects to have earnings before interest, taxes, depreciation, and amortisation from sales of bio-based products comprising half of total earnings within five years, up from zero at present.
BBGI spun off from Bangchak and has become a key biofuel maker since 2017. The company plans to add value to its feedstocks, including sugar and cassava.
Mr Kittiphong said the firm expects to spend 4.54 billion baht from the IPO to develop high value-added bio-based products using synthetic biology.
This scientific field, also known as synbio, involves redesigning organisms for specific purposes by engineering them to have new abilities.
Bangchak previously injected 800 million baht of Series B financing into Manus Bio, a US startup and biotechnology manufacturer, through BBGI.
Manus Bio and BBGI formed a joint venture to set up Win Ingredients to develop biotech business in Thailand.
BBGI also teamed up with Bio Om Co, a startup spun off from Chulalongkorn University to produce bio-based products.
One product is a bio-based cleaning substance that can break down the chemical structure.
The firm wants to use the substance to clean vegetables and fruit contaminated with pesticides.
The cooperation with Bio Om Co offers good prospects, said Mr Kittiphong.
BBGI believes the new cleaning product will be popular with Thai consumers concerned about pesticides on their fruit and vegetables, he said.
