Pace Development slumps 22.9% in Bangkok IPO
Thailand’s luxury property developer Pace Development, the developer of Thailand’s tallest tower MahaNakhon in Bangkok, obviously chose a bad time to go public on the Stock Exchange of Thailand. The company’s shares, which started trading on August 7 at 3.10 baht per share, ended their first day 22.9 per cent lower to close at 2.70 baht.
It was the first dismal IPO on the country’s stock exchange this year, showing that the IPO party seems to be over in Thailand.
Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities, the financial adviser and lead underwriter of PACE, blamed “political uncertainties” for the disappointing debut. In fact, on Pace Development’s IPO day, protesters were gathering in Bangkok proclaiming nothing less than to overthrow the government.
Analysts said it would possibly have been wiser to delay the IPO due to increased short-term stock-market volatility. However, IPO subscription was already launched in July and there seemed to be no way back.
Kongkiat said that “Pace Development focuses on high-end consumers who usually are not affected by political turmoil and economic slumps thanks to their high purchasing power.” But still, the investment sentiment remains to be gloomy given the political disturbances and economic glitches the current Thai government currently has to deal with.
Among other IPOs scheduled to list in Thailand in 2013 are restaurant chain MK Group, Bangkok Airways, property developer Amata VN, Mega Lifesciences, Namyong Terminal, Thailand’s leading terminal service provider for auto exports, and insurance company Thaire Life Assurance.
[caption id="attachment_13687" align="alignleft" width="300"] Thailand's tallest tower, MahaNakhon, is Pace Development's flagship property[/caption] Thailand's luxury property developer Pace Development, the developer of Thailand's tallest tower MahaNakhon in Bangkok, obviously chose a bad time to go public on the Stock Exchange of Thailand. The company's shares, which started trading on August 7 at 3.10 baht per share, ended their first day 22.9 per cent lower to close at 2.70 baht. It was the first dismal IPO on the country's stock exchange this year, showing that the IPO party seems to be over in Thailand. Kongkiat Opaswongkarn, chief executive officer of Asia...
Thailand’s luxury property developer Pace Development, the developer of Thailand’s tallest tower MahaNakhon in Bangkok, obviously chose a bad time to go public on the Stock Exchange of Thailand. The company’s shares, which started trading on August 7 at 3.10 baht per share, ended their first day 22.9 per cent lower to close at 2.70 baht.
It was the first dismal IPO on the country’s stock exchange this year, showing that the IPO party seems to be over in Thailand.
Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities, the financial adviser and lead underwriter of PACE, blamed “political uncertainties” for the disappointing debut. In fact, on Pace Development’s IPO day, protesters were gathering in Bangkok proclaiming nothing less than to overthrow the government.
Analysts said it would possibly have been wiser to delay the IPO due to increased short-term stock-market volatility. However, IPO subscription was already launched in July and there seemed to be no way back.
Kongkiat said that “Pace Development focuses on high-end consumers who usually are not affected by political turmoil and economic slumps thanks to their high purchasing power.” But still, the investment sentiment remains to be gloomy given the political disturbances and economic glitches the current Thai government currently has to deal with.
Among other IPOs scheduled to list in Thailand in 2013 are restaurant chain MK Group, Bangkok Airways, property developer Amata VN, Mega Lifesciences, Namyong Terminal, Thailand’s leading terminal service provider for auto exports, and insurance company Thaire Life Assurance.
