Thailand’s Jasmine International’s (JAS) Broadband Internet Growth Infrastructure Fund plans to issue initial public offering (IPO) within this year.The fund by the Thai-based integrated telecommunication service provider will provide capital to expand the company’s optical fiber network.
The fund is waiting for clearance from the Securities and Exchange Commission (SEC) for the IPO that was delayed due to legal complications and political chaos in the Kingdom. Read more about the the Fund here.
According to IFR Report, the fund will start pre-marketing the IPO, of up to $1 billion, this month. It is targeting a yield of 7%-8%. However, the fund and its financial advisor and underwriter for the IPO Bualuang Securities, refused to confirm this.
Earlier, Jasmine International Plc planned to sell the fiber optic network, Access Node and Cable to the Jasmine Growth Fund. But in the latest shareholder’s meeting, the shareholders only approved the sale of the fiber optic network to the fund, according to Sudhitham Chirathivat, chairman of the company’s Board.
However, the fund’s capitalization is still expected to reach 55 billion-70 billion baht ($1.7 billion – $2.2 billion).
A source in JVS Financial Advisory Company Limited told DealStreetAsia that if Jasmine International can sell its asset to the fund, it will help to improve the financial status of the company and its subsidiaries.
However, he said that the rumor regarding the company’s legal troubles could negatively effect the confidence of both the domestic and the foreign investors. It could also impact the fund’s planned IPO .
One of the big legal cases against Jasmine International involves TT&T, which has filed a lawsuit against the company regarding it’s stake in Acumen (ACU). TT&T has demanded that ACU sell 69.4% of shares in Triple-T Broadband Company (TTTBB) to TT&T because it claimed that JAS’s purchase of TTTBB’s paid-up shares was unfair to TT&T.
JAS’s CEO Pete Bodharamik had earlier said that even if the company was unable to raise funds through an IPO this year, it will continue expanding its broadband network. The company hopes to increase its broadband customer base from the current 1.6 million to two million by next year, through this expansion.
But if it can trade this year, some part of the money will be used to pay off debts on balance sheet and to pay dividend to the shareholders.