Thai state-owned PTT retail unit targets to raise up to $1.8b in IPO

The logo of PTT is pictured at an exhibition hall in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha

Thai oil and gas company PTT Pcl has priced an initial public offering (IPO) of shares in retail unit PTT Oil and Retail (PTTOR) to raise up to $1.8 billion, it said on Thursday ahead of what is expected to be among the country’s largest listings this year.

The long-planned IPO follows a string of large Thai listings last year, with Central Retail Corporation Pcl and SCG Packaging Pcl each raising over $1 billion.

The Stock Exchange of Thailand plans to add 500 billion baht to its market capitalisation in 2021.

PTT set a preliminary price range for PTTOR shares between 16 baht and 18 baht, which would raise between 43.2 billion baht and 54 billion baht. ($1.44 billion to $1.80 billion)

PTTOR has placing agreements with 28 cornerstone investors, including SCB Asset Management, BBL Asset Management and Kasikorn Asset Management, it said in a separate filing on Thursday. Foreign cornerstone investors include Singapore sovereign wealth fund GIC, Asia Research & Capital Management, and JP Morgan.

The final price will be decided by Feb. 3, state-owned PTT said in a statement. PTT will hold 75% to 77.5% of shares after the IPO. PTTOR‘s main business is its 2,000 gas stations, but also 3,000 coffee shops under the Cafe Amazon brand as well as other restaurants. It booked profits of 5.8 billion baht in the first nine months last year, down from 8.9 billion baht in the same period a year earlier.

The company plans to use the IPO proceeds to expand its network of gas stations and invest in distribution centres for its oil business. The subscription period will run from Jan. 24 to Feb. 2 for retail investors and Feb 3-5 for institutional investors. Domestic financial advisers are Bualuang Securities, Finansa Securities, Kasikorn Securities, Phatra Securities, TISCO Securities.

Foreign initial purchasers include JP Morgan Securities, Morgan Stanley, and Merrill Lynch (Singapore), its filing said.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.