Thailand: TPI Polene Power to mobilise upto $500m via IPO

Image from TPI Polene's website.

TPI Polene Power Pcl, Thailand’s largest producer of waste-derived power, plans to raise up to 17.5 billion baht ($500.4 million) from selling 30 per cent stakes in an initial public offering (IPO).

It plans to sell 2.5 billion shares at a price between 6 baht to 7 baht ($0.17-$0.20) each, according to its parent firm TPI Polene’s statement to the Stock Exchange today (March 17).

Of the total, it will offer up to 125 million shares to TPI Polene’s existing shareholders on March 22-24 and sell the rest to the public on March 24-29.

The proceeds will be used to finance capacity expansion and repay the debt, said the company.

TPI Polene Power currently operates four plants with a total installed capacity of 150 MW. Two of them are refuse-derived fuel plants and the others are waste-heat power plants.

It reported a net profit of 1.82 billion baht ($52 million) and total revenue of 4.43 billion baht ($126.6 million) in 2016, a surge of 270 per cent and 58.62 per cent from the previous year, respectively. The skyrocket in both net profit and revenue was a result of the full operation of power plants last year.

Maybank Kim Eng Securities, Tisco Bank and CIMB Thai Bank are financial advisors on the IPO.

Besides TPI Polene Power, a few listed companies have also planned to list their subsidiaries this year including WHA Utilities and Power Pcl [a subsidiary of WHA Group], Mudman Pcl [a subsidiary of Sapsrithai Pcl], and Global Green Chemical Pcl [a subsidiary of PTT Global Chemical Pcl].

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