SET-listed Gunkul Engineering, a renewable energy developer, plans to list its subsidiary Gunkul Power Development on the stock market as the company continues to expand its power business.
Thitipong Techaratanayuenyong, chief financial officer at Gunkul, said an initial public offering of Gunkul Power Development is planned for the fourth quarter of this year, with share trading to start in the first quarter of 2023.
Gunkul intends to increase its power generation capacity to 1,000 megawatts over the next five years, up from the current 655MW.
The company is allocating capital spending of 20 billion baht for use between 2022 and 2024.
Up to 17 billion baht of the budget will be spent expanding the firm's clean energy business, including acquiring new energy assets in Asia-Pacific. Some 2 billion baht will be used to develop the hemp business, while the remaining 1 billion baht will be set aside for innovation-related businesses.
The company diversified into the cannabis and hemp business in March 2021, and three months later announced it would spend almost 2 billion baht to develop a new cannabis plantation and cannabis oil production facility over the next two years.
Gunkul turned 200 rai of its wind farm in Nakhon Ratchasima into a plantation and production facility, with a projected capacity of 1.1 tonnes of cannabis per day.
The cannabis business is operated by Gunkul's wholly owned GK Hemp Group. Of the 2-billion-baht budget, 1.5 billion baht is for plantation development while 500 million baht is to develop a factory to extract cannabidiol oil.
Cannabidiol, also known as CBD, can be used to treat many ailments.
Mr Thitipong said Gunkul expects its cannabis business to start generating revenue next year.
"Cannabis-based products are expected to be our new S-curve business," he said.
The company also recently opened Gan Chaya Clinic, a wellness and cannabis medicine facility in Bangkok.
In the construction sector, revenue from Gunkul's subsidiary Future Electrical Control Co made up 16% of its total revenue of 4.6 billion baht during the first six months of this year.
Construction services provided by Future Electrical Control include construction of renewable power plants and electricity distribution systems.
The company said it also sees bright business prospects in rooftop solar panel installation, which is currently in high demand, and its work to move power lines underground in metropolitan areas.
