Thai Bev float in Singapore to bring family Bt20 bn
The Sirivadhanabhakdi family will obtain up to Bt20 billion from the sale of its shares in Thai Beverage Plc through a public float, the biggest fund-raising effort in Singapore in a decade.
Thai Beverage, a distillery owner and brewer of Thailand's best-selling Chang Beer, yesterday launched its 4.89 billion initial public offering shares in Singapore and the offering will run until Tuesday. The initial price has been set in a range of 26 to 36 Singapore cents each and the final price will be fixed on Wednesday.Of the total allocation, 2.48 billion shares are newly issued shares, and the remainder belongs to the family of Charoen Sirivadhanabhakdi Deutsche Bank Singapore Branch, JP Morgan, Merrill Lynch (Singapore), Phatra Securities and SCB Securities serve as the co-arrangers in the overseas market for the deal, while Deutsche Bank's Singapore branch, JP Morgan, Merrill Lynch and DBS Bank are underwriters for the local market. The company's senior vice president Ueychai Tantha-Obhas said that 4.64 billion out of the 4.89 billion shares are earmarked for institutional investors and 244.45 million are on offer to Singapore's retail investors. The brewer and distiller has also set aside another batch of 733.35 million shares in case of oversubscription. The firm's paid-up capital will be raised from Bt22 billion to Bt25.18 billion following the share allocation. The stock will become one of the 10 largest in terms of market capitalisation on the Singapore Exchange (SGX) with a size of 6.55 billion-9.06 billion (or about Bt160.06 billion to Bt221.62 billion). It will start trading on the SGX on May 30. Another brewer listed in Singapore is Asia Pacific Brewery, the market capitalisation of which accounts for only one-third of that of Thai Beverage. Thai Beverage's shares on the first day of subscription received a good response from Singapore's retail investors. The shares are being made through the ATMs of commercial banks in Singapore. Proceeds arising from the share offering will be used to service company debts worth Bt23.6 billion and also reserved as working capital. The firm sought listing on the SGX after strong protests by anti-alcohol groups in Thailand derailed the firm's local-listing plans. "Listing our stock in Singapore is to enlarge the overseas market, which is possible through alliances. It is necessary to have the same standard as the prospective alliance partners, almost all of whom are listed companies. We aim to become the biggest brewer in the Asean region over the next five years," Ueychai said. He confirmed that the company had maintained its plan to seek a dual listing on the Thai stock market, but it would depend on the stock authorities. Siriporn Chanjindamanee The Nation SINGAPORE
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