Thai Beverage submitted its initial share sale application to the Monetary Authority of Singapore last week.

An unnamed source close to the deal said the company would conduct an initial road show to Hong Kong, Singapore and New York to present research about Thai Beverage early May to test the markets.

The company, owned by Charoen Sirivadhanabhakdi, will participate in the road show in the same three market during the third week of May, the source said.

JP Morgan Chase & Co, Merrill Lynch & Co and Morgan Stanley have been assigned as Thai Beverage's financial advisor for the IPO.

"The company's shares have received good response from institutional investors and bookbuilding would be made late May or early June," the source added.

Bookbuilding is a process to set the IPO share price based on institutional investors' demand. Thai Beverage is planning to raise US$900 million to $1 billion (Bt34.9 billion to Bt38.9 billion) from an initial public offering (IPO) in Singapore, Bloomberg quoted three sources involved in the sale.

The planned IPO may be the largest since Singapore Telecom-munication raised 4 billion Singapore dollars (Bt96.3 billion) in 1993 in the city-state's largest initial share sale, Bloomberg said.

Thai Beverage decided to list on the Singapore Exchange after social activists and religious sects strongly protested against its listing on the Thai stock market. In addition, the Securities and Exchange Commission has confirmed its stance that Thai Beverage's IPO share allocation will be considered only after the act governing alcohol is available.

However, the company said it would also seek to list on the Thai bourse if the securities watchdog allows the share offering in the Kingdom.

Earlier, the Stock Exchange of Thailand's research estimated that Thai Beverage Plc listing on the SGX would push away an estimated Bt30 billion of potential foreign investment in the company's local stock.

Also, at least Bt200 billion in market capitalisation based on the IPO value would be lost, more than Bt260 million of potential liquidity could disappear and brokers would lose Bt650 million in brokering fees from trading the stock.

Siriporn Chanjindamanee

The Nation