Thai meat producer Betagro shares slide 9% on debut

… (Reuters) - Shares in Thai meat producer Betagro Pcl (BTG … is Thailand';s second-biggest listing of 2022 after Thai Life … to concern over potential government action on food prices. … uncertainty on whether the government will take action on high …

Thai meat producer Betagro shares slide 9% on debut

BANGKOK, Nov 2 (Reuters) - Shares in Thai meat producer Betagro Pcl (BTG.BK) closed 9% below their offer price on their first trading day on Wednesday, marking a weak start for the country's second-largest listing this year amid concerns over food prices.

The drop came as the benchmark index (.SETI) fell 0.04%.

The initial public offering (IPO) is Thailand's second-biggest listing of 2022 after Thai Life Insurance's $1 billion listing in July.

Betagro, which produces meat and pet food, in October said it would sell up to 25% of shares, raising at least 17.4 billion baht ($462.52 million).

Cornerstone investors made up 42% of its base offering, including domestic funds Krungsri Asset Management and TISCO Asset Management, according to a term sheet.

Foreign investors include Fiera Capital and Eurizon Capital.

Some analysts linked part of the share decline to concern over potential government action on food prices.

"There is uncertainty on whether the government will take action on high pork prices," said M Corp Review analyst Athaporn Arayasantiparb.

Other risks included increasing wheat prices, which are used in pork feed production, he added.

The IPO's bookrunners were BofA Securities, Bualuang Securities, and Phatra.

($1 = 37.6200 baht)

Reporting by Chayut Setboonsarng Editing by Ed Davies and Mark Potter

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