Retail investors placed first in queue for Bt54bn listing of PTTOR
Retail investors will be prioritised in the initial public offering (IPO) by PTT Oil and Retail Business (PTTOR) late this month, in what looks set to be one of Thailand’s largest listings this year.
The ministry will allocate the PTTOR shares for retail investors to book via financial institutions, said Energy Minister Supattanapong Punmeechaow said on Monday.
The minimum booking of 300 shares will cost around Bt5,400, making them affordable for all, explained Supattanapong, who is also deputy prime minister.
Shares will also be allocated to existing shareholders, institutional investors and the government as a PTT shareholder, he said.
PTTOR plans to raise Bt41 billion-Bt46.9 billion via the IPO. Share booking will run from January 24-February 2 for retail investors, from January 25-28 for PTT shareholders, and February 3-5 for institutional investors.
Retail investors can book shares via three banks – Kasikornbank, Bangkok Bank and Krungthai Bank. Kasikornbank said investors could book via its website from 9am on January 24.
Last week, PTTOR set the price of its 3 billion IPO shares (including 390 million overallotment shares) at Bt16-Bt18 per share, aiming to raise between Bt48 billion and Bt54 billion.
PTTOR will offer 300 million shares to existing PTT shareholders, 595.7 million to retail investors, and 1.71 billion to institutional investors.
Of the latter, 1.26 billion will be offered to domestic institutional investors and 450 million to international institutional investors.
The biggest domestic institutional investor in the IPO will be SCB Asset Management (239 million shares), while the biggest international institutional investor will be GIC Private Limited (215 million).
After the IPO, PTTOR's registered capital will rise from 9 billion to 12 billion shares, and the company will be listed in the SET50 index with a market capitalisation of at least Bt200 billion.
PTT will remain the largest shareholder with a 75 per cent stake, followed by institutional investors with a 14.29 per cent stake.
The IPO will raise funds to support PTTOR's five-year expansion plan covering new PTT stations, fuel distribution centres, retail stores and overseas business. The company will also use the funds to repay loans and invest in new businesses.
UOB Kay Hian Securities strategist Kitpon Pripisankit said the price of PTTOR's IPO has a forward price-to-earnings (forward P/E) ratio of 16-18 times – lower than the forward P/E ratio of oil retail business (17-20 times) and non-oil business (25-28).
“Institutional investors' demand for PTTOR shares will exceed the number allocated because large companies’ shares are currently attractive," he said.
