Thailand: Bhiraj REIT to raise up to $159m; Asia Biomass files for IPO

Image from Bhiraj Tower

Bhiraj Office REIT has announced its trust units’ price at 10 baht each to mobilise up to $159 million. Asia Biomass is to sell 25 per cent of its registered capital via IPO.

Bhiraj REIT raising $159m to invest in Bhiraj Tower

Bhiraj Office REIT will raise no more than 5.15 billion baht ($159 million) at the offering price of 10 baht per trust unit in a bid to invest in long-term leasehold right of the Bhiraj Tower at EmQuartier.

At least 25 per cent of all the issued trust units will be offered to Bhiraj Buri Group and associated individuals and the rest will be offered to institutional and general investors.

After selling the trust units, the Bhiraj Office REIT will invest in assets with a value of not more than 6.6 billion baht ($203 million), said Sawit Srisaranyapong, Chief of Investment Banking Business Division of Kasikornbank, a co-financial advisor and co-lead underwriter.

Of the total investment, 5.15 billion baht will come from the offering of trust units and not more than 1.75 billion baht ($54 million) from long-term loans from financial institutions.

The leasehold right of the Bhiraj Tower covers office area for rent, parking area, common office area and utility system area for the project – totaling 94,853 square meters. The leasehold period starts from the expected date to invest of 1 January 2018 until 30 September 2044.

Asia Biomass files for IPO

Thai biomass fuel supplier Asia Biomass Pcl (ABM) has received approval to issue 75 million shares, equivalent to 25 per cent of total registered capital, in its initial public offering (IPO).

Rutchanee Chatbunchachai, senior vice president of Sage Capital, a financial advisor to the IPO, said that ABM plans to use the IPO proceeds to acquire more land to increase the capacity of stocking palm shells in Indonesia and Malaysia.

Some of the proceeds will go toward the joint venture with Fancywood Industries Pcl to establish a biomass pellet production plant in the southern region of Thailand, she added.

ABM currently has registered capital of 150 million baht ($4.6 million), divided into 300 million shares at the par value of 0.50 baht each.

It reported total revenue of 944 million baht ($29 million) and a net loss of 66.65 million baht ($2 million) in the first nine months of 2017.

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