Investors Are Ready for Thai Property IPO Bonanza

(Bloomberg) -- For investors looking for a slice of the Thai property market, this is the year.

S Hotels and Resorts, the hotel arm of real estate group Singha Estate, began gauging investor interest on Monday for an initial public offering. The CEO of Singha Estate said last year the IPO could raise $300 million - $400 million.

The planned spinoff comes on the heels of billionaire Charoen Sirivadhanabhakdi’s proposed IPO of Asset World Corp., the Thai developer of hotels, shopping malls and office buildings, which could raise as much as $1.6 billion. Asset World will stop taking orders for the IPO on Friday and is expected to list on the Thai stock exchange on Oct. 10, according to terms for the deal obtained by Bloomberg.

Thailand has seen just two real estate IPOs this year which have raised a combined $32 million, data compiled by Bloomberg show. The most raised by the sector in first-time share sales over the past 10 years was in 2015, when proceeds came in at $258 million, the data show, making 2019 a bumper year if Asset World and SHR go through as planned.

Billionaire Charoen’s TCC Group and Singha Estate, controlled by the Bhirombhakdi family, are raising funds from the listings of their hospitality units to finance acquisitions and the construction of new hotels. They are trying to tap into a tourism boom in Thailand, and Bangkok was recently ranked as the world’s most visited city by MasterCard Inc.

SHR launched a new upscale resort in the Maldives just last week as part of its CROSSROADS project there, featuring the Hard Rock Hotel Maldives. It has also been developing a new upscale resort brand which will be applied to the SAii Lagoon Maldives project. Singha Estate has said that hospitality has the best growth outlook compared to residential and commercial property.

The rise in property developer IPOs in Thailand comes, however, as the Stock Exchange of Thailand Property Development Index has dropped 2.2% this year.

UPCOMING LISTINGS:

  • Budweiser Brewing Company APAC Ltd.
    • Hong Kong exchange
    • Size up to $4.8b
    • Book closing Sept. 23, listing Sept. 30
    • JPMorgan, Morgan Stanley
  • Jiangsu Cnano Technology
    • Shanghai Star board
    • Size $138m
    • Took orders Sept. 16; listing date TBA
    • Minsheng Sec.
  • Topsports International Holdings
    • Hong Kong exchange
    • Premarketing started Sept. 9
    • Size about $1b
    • Bank of America, Morgan Stanley
  • Lendlease Global Commercial REIT
    • Singapore exchange
    • Taking orders from Sept. 17
    • Expected listing Oct. 2
    • As much as S$740.3m
    • DBS, Citi
  • Asset World
    • Thailand exchange
    • Price: 6 baht
    • Size up to $1.6b
    • Property arm of billionaire Charoen Sirivadhanabhakdi
    • Expected listing date: Oct. 10
    • BofA Merrill Lynch, Morgan Stanley, UBS
  • Home Credit
    • Hong Kong exchange
    • Consumer finance unit of Czech billionaire Petr Kellner’s PPF Group
    • Premarketing started Sept. 2
    • Citi, HSBC, Morgan Stanley
  • AllHome
    • Philippines stock exchange
    • Size up to $302m
    • Opened books Sept. 13
    • Pricing Sept. 26
    • Expected listing Oct. 10
    • Owned by billionaire Manuel Villar
  • Guangdong Sirio Pharma
    • Shenzhen exchange
    • Size $173m
    • Priced Sept. 10; listing TBA
  • Shenzhen Transsion Holdings
    • Shanghai Star board
    • Size $419m
    • Priced Sept. 17; listing TBA
    • Biggest smartphone maker for Africa

More ECM situations we are following:

  • Anheuser-Busch InBev NV’s Asian unit is likely to price in the lower half of the range in its initial public offering, according to a poll of investors, echoing the market sentiment ahead of the earlier failed attempt at a listing
  • Global Switch said it’s continuing preparation for a public listing on a “leading international stock exchange,” following the acquisition of a further 24.01% stake in the business by Jiangsu Shagang Group
  • Vietnamese computer maker CMC Corp plans to sell all its shares in Bao Viet Bank, co. says in website statement, without specifying its stake size in the lender

SEE ALSO

  • Asia ECM Weekly Agenda
  • IPO data
  • U.S. ECM Watch
  • EU ECM Watch
  • To receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this article

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