I-Tail Corp Pcl (ITC), Thailand’s top pet food maker, climbed on its trading debut after the country’s second-largest initial public offering this year.
The pet food manufacturer is a division of Thai Union Group, the largest producer of frozen and seafood goods in the world.
Shares of the Bangkok-based company rose as much as 5.5% to trade at 33.75 baht before trimming gains to 32.25 baht as of 10:02 a.m. in Bangkok, reported Bloomberg. The subsidiary raised 21.1 billion baht ($606 million) after selling 660 million shares at 32 baht each, the top of a marketed range. It’s the largest debut in Bangkok since Thai Life Insurance Pcl. in July.
According to ITC, it is among the top ten pet food manufacturers worldwide and the number two pet food manufacturer in Asia. ITC specialises in wet pet food that contains fish.
Thai Union Group began processing fish more than 40 years ago and soon discovered that the same nutrient-rich fish could be utilised for both human and animal food.
The Thai Union pet care division expanded along with the company's customer base. With the addition of emulsified meat chunk and loaf items, the initial fish product line underwent an extension that resulted in a more diverse product line.
But in order to become known as a top-tier pet food producer, pet food became the company's only emphasis. As a result, it emerged from Thai Union's shadow and set up a business unit devoted to the production of pet food. According to their corporate website, "With our meticulously formulated products, we focused on ways to enhance pet health and happiness."
"The global pet food market will continue its strong growth momentum as pet owners are willing to pay a premium price for more functional and nutritious food," the company said in a statement.
According to its website, ITC offers vitamin drinks for cats and dogs as well as mini-pouch tuna flakes.
Thailand's success in pet food exports
Driven by the pandemic, which made people spend more time at home and shift their attitudes toward treating dogs as members of the family, Thailand's exports of pet food began booming.
Thailand accounted for 9.7% of the global market for pet food for dogs and cats in 2021, placing third after Germany (12.6%) and the US (9.9%), according to the Bangkok Post.
Visit Limlurcha, president of the Thai Future Food Trade Association, said the global pet food market was valued at $94.8 billion in 2021 and is expected to expand at a compound annual growth rate of 4.4% from 2022 to 2030, citing a study by Grand View Research.
He also added that edible insects and protein sourced from insects are likely to see strong export potential in the world market given growing global concerns about food security as a result of the serious impact on supply chains caused by the ongoing Russia-Ukraine war.
There has been an increase in the demand for pet food in various regions of the world as more people adopted pets in response to a growing need for companionship during lockdowns.
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