Thai billionaire plans record $2.3b listing

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trueThailand’s richest man, Dhanin Chearavanont, who is valued by Forbes at a net worth of $12.6 billion, is planning the country’s biggest ever initial public offering after the IPO of Bangkok’s Skytrain infrastructure fund in April 2013.

Chearavanont, who with his family controls Thailand’s second largest telecom company True Corporation, said he wants to spin off True’s 3G and broadband networks into an infrastructure fund in an initial public offering worth at least $2.3 billion, higher than the IPO value of the BTS fund of $2.1 billion.

True, which operates fixed-line and mobile communications networks and a pay television business in Thailand, said it planned to use the proceeds from the IPO to reduce debt stands at $1.83 billion.

By spinning off assets into an IPO, True, which is 63.3 per cent owned by Chearavanont’s conglomerate CP Group, is seeking to capitalise on a 70 percent increase in its share price this year. The company is also hoping that investors in Asia retain their appetite for infrastructure funds.

True’s proposal would package 13,000 telecommunications towers, 28,000 miles of fiber-optic cable networks and the revenue from its 3G networks into a stand-alone infrastructure fund. The company in turn would lease back some of those assets for a maximum of 15 years, according to its filings with the Stock Exchange of Thailand. True would also buy a stake of at most 33.3 per cent in the fund.

 

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Reading Time: 1 minute

Thailand’s richest man, Dhanin Chearavanont, who is valued by Forbes at a net worth of $12.6 billion, is planning the country’s biggest ever initial public offering after the IPO of Bangkok’s Skytrain infrastructure fund in April 2013.

Reading Time: 1 minute

trueThailand’s richest man, Dhanin Chearavanont, who is valued by Forbes at a net worth of $12.6 billion, is planning the country’s biggest ever initial public offering after the IPO of Bangkok’s Skytrain infrastructure fund in April 2013.

Chearavanont, who with his family controls Thailand’s second largest telecom company True Corporation, said he wants to spin off True’s 3G and broadband networks into an infrastructure fund in an initial public offering worth at least $2.3 billion, higher than the IPO value of the BTS fund of $2.1 billion.

True, which operates fixed-line and mobile communications networks and a pay television business in Thailand, said it planned to use the proceeds from the IPO to reduce debt stands at $1.83 billion.

By spinning off assets into an IPO, True, which is 63.3 per cent owned by Chearavanont’s conglomerate CP Group, is seeking to capitalise on a 70 percent increase in its share price this year. The company is also hoping that investors in Asia retain their appetite for infrastructure funds.

True’s proposal would package 13,000 telecommunications towers, 28,000 miles of fiber-optic cable networks and the revenue from its 3G networks into a stand-alone infrastructure fund. The company in turn would lease back some of those assets for a maximum of 15 years, according to its filings with the Stock Exchange of Thailand. True would also buy a stake of at most 33.3 per cent in the fund.

 

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