Thailand’s IPO Fundraising Is Set for Four-Year High

19 Nov 2019, 02:55 AM IST

(Bloomberg) -- Thai companies are likely to raise the most money from initial public offerings in four years in 2019 as the formation of the nation’s first democratic government since the 2014 military coup has encouraged domestic firms to tap equity markets.

Companies have raised 80 billion baht ($2.6 billion) this year on the Stock Exchange of Thailand and the Market for Alternative Investment, its second-tier board, according data on the bourse’s website. The full-year IPO amount will probably reach more than 110 billion baht, the most since 2015, as state-owned Bangkok Commercial Asset Management Pcl is seeking at least 32 billion baht in an initial offering this month, stock-exchange data showed.

Thailand’s IPO Fundraising Is Set for Four-Year High

Billionaire Charoen Sirivadhanabhakdi, the nation’s richest person, and the Bhirombhakdi family, which owns Thailand’s most-popular beer, have listed hotel and property development units this quarter to finance their expansion. The drop in those units’ share prices since their listings may affect investors’ sentiment on new offerings. This year’s Thai IPOs have fallen 13% on average, compared with a mean 4% increase last year, according to data compiled by Bloomberg.

“The momentum of IPOs may carry forward into 2020 as there have been a number of major companies expressing their desire to list,” Manpong Senanarong, the head of the stock exchange’s Issuer Marketing Division, said by phone. “Still, there is some uncertainty on the fragility of the global economy and the volatility of the financial markets.”

Charoen’s Asset World Corp. and the the Bhirombhakdi family’s S Hotels & Resorts Pcl have dropped 5.8% and 23%, respectively, from their offer prices. The benchmark SET index has slid 2% this quarter as international investors pulled $266 million from the local bourse, according to data compiled by Bloomberg.

Listings that are expected to take place next year include Siam Cement’s float of its SCG Packaging unit and the IPO of Central Group’s retail arm that could raise around $2 billion.

UPCOMING LISTINGS:

Alibaba Group Holding
- Hong Kong exchange
- Size about $12b
- Pricing Nov. 20; listing Nov. 26
- Credit Suisse, CICC
Postal Savings Bank of China
- Shanghai exchange
- Size $4.1b
- Taking orders Nov. 28
- Citic Securities, CICC, China Post Securities, UBS Securities
China Zheshang Bank
- Shanghai exchange
- Size $1.9b
- Took orders Nov. 14; listing date TBA
- Citic Securities
Heaven-Sent Gold Group
- Hong Kong exchange
- Up to $180m
- Pricing Nov. 18, listing Nov. 25
- CLSA
Pharmaron Beijing
- Hong Kong exchange
- Size up to $588m
- Pricing Nov. 21; Listing Nov. 28
- CLSA, Goldman Sachs, Orient Capital
Venus Medtech
- Hong Kong exchange
- Size up to $400m
- PDIE Nov. 11-22
- Goldman Sachs, CICC, Credit Suisse, China Merchants Securities
China Merchants Commercial Reit
- Hong Kong exchange
- Size about $400m
- Started gauging demand Nov. 14; listing date TBA
- Citigroup
Canaan
- Nasdaq
- Size $110m
- Pricing Nov. 20
- Citigroup, China Renaissance, CMBI, Galaxy Digital, Huatai Securities, Tiger Brokers, Haitong International
Bangkok Commercial Asset Management
- Thailand stock exchange
- Size up to $1.16b
- Listing date TBA
- Trinity Securities, Kasikorn Securities
Longyan Zhuoyue New Energy
- Shanghai Star board
- Size $191m
- Took orders Nov. 11; listing date TBA
- Yingda Securities

More ECM situations we are following:

Alphamab Oncology starts gauging investor demand for its proposed Hong Kong IPO from Monday, according to terms of the deal obtained by Bloomberg.
CDP Holdings files for an IPO of American depositary shares.
Muted investor appetite for China Zheshang Bank’s listing comes as a fresh sign that Chinese demand for new shares is waning after a spate of losses by freshly listed firms.
Heaven-Sent Gold has pulled its Hong Kong IPO of up to HK$1.4 billion because of poor market conditions, IFR reported, citing unidentified people close to the deal.