Busy IPO year ahead for Thailand

MahaNakhon

Pace Development, builder of Thailand’s tallest tower MahaNakhon (pictured), plans to raise money from the capital market to expand in Bangkok and Hua Hin.

The momentum for initial public offerings at the Thai bourse will continue in 2013 with more than 30 potential listings in the pipeline, the Stock Exchange of Thailand (SET) said.

Fourteen companies have already submitted or will shortly submit filings to the Securities and Exchange Commission, and some 20 will follow later this year either for a listing at the SET or at the Market for Alternative Investment (MAI).

Among them are some high-caliber IPOs, for example PTG Energy, the country-wide operator of PT petrol stations. PTG, which operates 570 petrol stations, aims to sell 420 million shares, representing 25.15 per cent of its existing registered capital, at a par price of one baht a share. Of the total IPO shares, 386.6 million will be offered to the public with the remaining 33.4 million made available to directors, executives and employees, according the company’s filing. PTG wants to use the funds from the IPO for expansion and by open 100 new petrol stations.

Another top-notch IPO will be made through Thailand’s leading industrial land developer, Amata Corporation. The company wants to raise funds for investment in Vietnam and will place 139 million shares in an initial public offering with a par value of 0.50 baht per share in the second quarter of 2013 through its newly established holding Amata VN. It will be the first holding company at the SET which has recently allowed holding companies that invest exclusively offshore to list.

Domestic budget carrier Nok Air, a subsidiary of Thai Airways, also wants to raise money to fund its growth and will offer up to 30 per cent stake in the company on the SET in mid-2013. Private regional carrier Bangkok Airways is also looking into an IPO launch in either April or May 2013, according to its management. Both Nok Air and Bangkok Airways will then follow Thai AirAsia, which was the first budget carrier to make its trading on Bangkok’s stock exchange in May 2012.

Pace Development, a Bangkok-based developer of high-end properties that currently builds Thailand’s tallest tower, MahaNakhon, a commercial and residential 314-meters tower in Bangkok worth $639 million, plans to place 600 million shares in an initial public offering in the second quarter of 2013 at a par value of 1 baht per share to finance new projects in central Bangkok and Hua Hin. The Techakraisri family, which is the major shareholder of Pace Development with 77.96 per cent, plans to dilute its holding to 55.19 per cent after the IPO.

Other planned 2013 IPOs at the SET are Premier Products, a water treatment and storage system specialist, mall operator Zeer Property, healthcare provider Chularat Hospital, biodiesel maker Energy Absolute, IT firm CCN Tech, media firm Mono Technology and a number of other medium-sized businesses that want to list at the MAI.

2013 will also see new rules for Real Estate Investment Trust and Thailand’s first infrastructure fund to list, BTS Growth Infrastructure Fund, of Skytrain operator BTS, which seeks to raise no less than $1.5 billion from the capital market.

In 2012, 18 newly listed firms raised $1.75 billion. The largest IPO as per market capitalisation was advertising company VGI Global Media. 

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Arno Maierbrugger

Business journalist

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