Smothong Group Public Company Limited (SET: SMO) shares faced a rocky start on its market debut on November 10, 2025, closing at THB 4.10 per share, down 24.07% or about THB 1.30 from the initial public offering (IPO) price of THB 5.40.
Mr. Kittipong Puangmala, Chief Executive Officer of SMO, stated that investing in this IPO represents a medium- to long-term investment opportunity. SMO is classified as both a growth stock, with sales this year projected at approximately THB 9 billion, and a dividend stock, as a dividend payout is expected to be considered this year following a policy to pay no less than 50% of net profit after deduction of all expenses.
The capital raised in this round aims at driving business growth. SMO plans to increase production capacity by about 30% in 2026, which will raise capacity to over 300 tons of fresh palm fruit per hour, from the current 240 tons per hour. There is a plan to build a new factory, which will further increase capacity in 2028, supporting continuous sales growth.
Mr. Somphop Keerasuntonpong, Managing Director of Finansia Syrus Securities, acting as the lead underwriter of SMO’s IPO, remarked that the initial share price may be affected by investor sentiment and speculation, resulting in price movements not reflective of fundamentals. Investors could end up disappointed or incur losses if they speculate on a first-day lottery-like gain. On the other hand, pricing based on business fundamentals and growth prospects is crucial.
Dr. Sompop Sakphanphanom, Chairman of Asset Pro Management Co., Ltd. (APM), as the financial advisor of SMO, noted that considering the company’s fundamentals, investing in an IPO is an opportunity for medium- to long-term investment rather than short-term speculation, given the company’s clear dividend policy and significant growth potential.
Mr. Kusol Sripaoraya, Chief Financial Officer of SMO, projected sales in 2026 to reach around THB 11-12 billion, up from an estimated THB 9 billion this year, based on the current crude palm oil (CPO) price, cost control, and a 30% production capacity increase at the Phanom district, Surat Thani province factory. The plant will increase CPO processing capacity by another 75 tons of fresh palm fruit per hour, from the current 75 tons per hour, resulting in a total capacity of 150 tons per hour in 2026. Altogether, the company’s total capacity will rise to 315 tons per hour from the current 240 tons per hour.
Additionally, SMO plans to establish a new factory in Nakhon Si Thammarat province on a 210-rai plot, with an investment value of about THB 800-900 million. This state-of-the-art factory will emphasize environmental, social, and governance (ESG) management and comprehensive dust and water systems, requiring an additional THB 200-300 million to address community environmental concerns. The factory setup costs are approximately THB 500-600 million, funded partly from IPO proceeds and loans.
It is expected that the new factory will have a production capacity of about 60 tons of fresh palm fruit per hour, which will bring the company’s total capacity up to about 400 tons per hour in 2028. There are also plans to expand the palm fruit collection yards by 13 more locations—10 small and 3 large—adding to the current network of over 50 sites, to support the new factory’s growth in Nakhon Si Thammarat province.
