PTT Plc, the country’s largest oil-and-gas company, has priced an initial public offering (IPO) for its retail unit, PTT Oil and Retail (PTTOR) to raise up to 54 billion baht, it said on Thursday (14th Jan 2021) ahead of what is expected to be among the region’s largest public offerings in 2021.
The long-awaited IPO follows a series of large IPOs in 2020 including Central Retail Corporation Plc and SCG Packaging Plc each raising over US$1 billion each.
The Stock Exchange of Thailand is aiming to add approximately US16.6 billion worth of market capitalisation to its exchange in 2021.
JP Morgan Securities, Morgan Stanley and Merrill Lynch (Singapore) are the key bookrunners while Bualuang Securities , Finansa Securities, Kasikorn Securities, Phatra Securities and Tisco Securities are among the main domestic financial advisers.
According to a banker involved with the offering, PTTOR is aiming for a pricing of between 16 baht and 18 baht, which would raise anywhere between 43.2 billion baht (US$1.4 billion) and 54 billion baht (US$1.8 billion)
With 28 cornerstone investors, including SCB Asset Management, BBL Asset Management and Kasikorn Asset Management, GIC, Asia Research & Capital Management, and JP Morgan, the issue is widely expected to fare well.
The final pricing will be decided by Feb 3, in a statement issued by state-owned PTT.
PTT will retain 75% to 77.5% ownership, following the offering.
PTTOR’s primary business is its 2,000 gas stations as well as 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 for retail investors will run from Jan 24 to Feb. 2 and Feb 3-5 for institutional investors.