Real estate IPO in Thailand could raise $600m

propert bangkokThailand’s largest home builder by market capitalisation, Land & Houses PCL, is mulling the listing of some of its real-estate assets at the Stock Exchange of Thailand in order to raise around $600 million, the Wall Street Journal reported.

The IPO could take place in the form of a property trust, in the fourth quarter of 2013.

Trusts generally appeal to funds and investors that seek yields and assured returns. According to Thai rules, the listed trust operator must pay at least 90 per cent of its adjusted net profit as a dividend to its unit holders.

However, Land & Houses still needs to apply for listing approval which is reportedly planned by the end of August.

The Thai stock market in tandem with its peers in Malaysia, Indonesia and the Philippines has fallen over the past weeks over investors’ concern about weakening economies in ASEAN and, moreover, about fears that the US Federal Reserve will start tapering its massive bond-buying programme.

But analysts say there is still enough domestic liquidity in Thailand for offerings such as that of Land & Houses.

Land & Houses is 23.76 per cent owned by Thai billionaire Anant Asavabhokhin, and Singapore’s sovereign wealth fund GIC owns a 16.13 per cent stake. It primarily develops residential urban housing throughout Thailand, concentrating on single detached houses. It also owns the Terminal 21 shopping mall including a hotel and serviced apartments in central Bangkok.



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Thailand's largest home builder by market capitalisation, Land & Houses PCL, is mulling the listing of some of its real-estate assets at the Stock Exchange of Thailand in order to raise around $600 million, the Wall Street Journal reported. The IPO could take place in the form of a property trust, in the fourth quarter of 2013. Trusts generally appeal to funds and investors that seek yields and assured returns. According to Thai rules, the listed trust operator must pay at least 90 per cent of its adjusted net profit as a dividend to its unit holders. However, Land &...

propert bangkokThailand’s largest home builder by market capitalisation, Land & Houses PCL, is mulling the listing of some of its real-estate assets at the Stock Exchange of Thailand in order to raise around $600 million, the Wall Street Journal reported.

The IPO could take place in the form of a property trust, in the fourth quarter of 2013.

Trusts generally appeal to funds and investors that seek yields and assured returns. According to Thai rules, the listed trust operator must pay at least 90 per cent of its adjusted net profit as a dividend to its unit holders.

However, Land & Houses still needs to apply for listing approval which is reportedly planned by the end of August.

The Thai stock market in tandem with its peers in Malaysia, Indonesia and the Philippines has fallen over the past weeks over investors’ concern about weakening economies in ASEAN and, moreover, about fears that the US Federal Reserve will start tapering its massive bond-buying programme.

But analysts say there is still enough domestic liquidity in Thailand for offerings such as that of Land & Houses.

Land & Houses is 23.76 per cent owned by Thai billionaire Anant Asavabhokhin, and Singapore’s sovereign wealth fund GIC owns a 16.13 per cent stake. It primarily develops residential urban housing throughout Thailand, concentrating on single detached houses. It also owns the Terminal 21 shopping mall including a hotel and serviced apartments in central Bangkok.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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