Tesco Lotus property fund enjoys good SET debut

Ek-Chai Distribution System, controlled by Britain’s largest retailer Tesco, this month raised Bt18.4 billion in an initial public offering of the fund. It sold shares at Bt10.40 each.

The Thai property fund debuted on the Bangkok Stock Exchange yesterday after raising US$600 million (Bt18.4 billion) when it priced the IPO at Bt10.40 per share.
The offering is expected to raise about Bt18 billion and will be the largest property-fund IPO in Thailand’s history, and the largest IPO on the SET since July 2006.
TLGF will initially invest in 17 Tesco Lotus hypermarket-anchored shopping malls in prime locations, as well as in the company’s new regional distribution centres to be opened within the next two or three years in Khon Kaen, Surat Thani, and Chiang Mai or Lampang.
Sompong Rungnirattisai, property director of Tesco Lotus, said: “The TLGF share price has gone up on the first trade day. This shows that investors have high confidence in TLGF and its growth potential, as well as the growth prospects of the Tesco Lotus business in Thailand. We strongly believe the TLGF has outstanding investment merits that truly set it apart from other property-fund offerings in Thailand.
 “Because of the geographically diversified portfolio of high-quality shopping malls, a good mix of freehold/leasehold properties, best-in-class tenant mix and the continued success of Tesco Lotus as a leading retailer and shopping mall operator, TLGF was extremely well received by global and local investors during our IPO. We had more than 10,000 retail subscribers, which was the highest number in Thailand’s history of property-fund IPOs.”