‘Thai Coconut’ Gains 50% on First Trading Day as Brokers Eye Target Price to Triple the IPO

Thai Coconut PLC’s stock (SET: COCOCO) debuted on the main Stock Exchange of Thailand (SET) today (14 Sep) with an increase by 50% to THB 8.25 per share before the closing of the morning session.


COCOCO’s IPO has raised THB 2 billion ($56 million) through 370 million shares at THB 5.50 per share and 22 P/E ratio. The company specialized in exporting coconut products and variations like coconut milk and pet snacks. COCOCO has a dividend payout policy of over 40% of its net profit.


COCOCO has continuously strong financial health due to its scale of economy. Last year, COCOCO recorded THB 3,381 million in revenue and 302 million in net profits. First half of this year, COCOCO already made almost THB 200 million of net profit, a 57% YoY increase.


Analysts set COCOCO’s target price range from THB 10.8 to THB 14.4, double or triple the IPO price, citing its expansion to 218,000 tons coconut production and a good outlook for next few years in the global coconut markets with more than 25% growth per year and around 24 P/E ratio and 0.47 EPS.