The State Enterprise Policy Office (Sepo) is optimistic that the Thailand Future Fund (TFF), the government's infrastructure fund, will sell units worth 40-50 billion to investors in the first batch.
The infrastructure fund's filing for an initial public offering will be submitted to the Securities and Exchange Commission in March and list on the Stock Exchange of Thailand (SET) next quarter, said Sepo director-general Ekniti Nitithanprapas.
The Expressway Authority of Thailand (Exat) is mulling one of the three brownfield projects to be added to the TFF's underlying assets in the first lot to be a source of income, said Mr Ekniti.
The three are Chalong Rat Expressway (Ram Intra-At Narong), Burapha Withi Expressway (Bang Na-Chon Buri) and Kanchanaphisek Expressway (Bang Phli-Suk Sawat).
Proceeds from the fund's unit offering will be used to finance construction of the expressway linking Rama III Road and Dao Khanong.
The National Economic and Social Development Board (NESDB) last week approved the fund-raising plan of Exat worth 30 billion baht by bundling the expressway linking Rama III Road and Dao Khanong to the first lot of the TFF.
The cabinet in December approved the launch of the TFF, which is intended to raise up to 100 billion baht from the public for the construction of big-ticket infrastructure projects. The fund will also afford the government more room to invest in necessary infrastructure projects with lower investment returns.
The Finance Ministry earlier said the fund will mobilise up to 100 billion baht to be invested in greenfield and brownfield infrastructure projects and will list on the SET. Some greenfield projects will offer a guaranteed minimum return. The ministry will put up 10 billion baht as seed money for the fund after having already sought cabinet approval for the first 1 billion.
Sepo aims to raise 60 billion baht in funds for TFF's second batch to finance construction of the 32-kilometer N7 motorway (Pattaya-Map Ta Phut) and the 65-km N9 motorway stretching from Bang Na to Ayutthaya's Bang Pa-in district, said Mr Ekniti.
"The TFF will be attractive, thanks to its guarantee of a return," he said. "It also has growth potential, as other projects will be added to the fund."
Meanwhile, Santi Kiranand, a SET senior vice-president, said the bourse aims for market capitalisation from securities in the primary market (excluding the TFF) to reach 280 billion baht in 2017.