The BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) priced its initial public offering (IPO) at the top end of the indicative price range in a bid to raise 62.51 billion baht.
It is Thailand's largest-ever listing and the third-biggest IPO worldwide this year.
The country's first infrastructure fund set the price for its 5.79 billion IPO units at 10.80 baht apiece, the high end of the price range of 10.40 to 10.80 baht.
The fund's pricing indicates investors' strong enthusiasm for newly issued securities despite a roller-coaster stock market in recent weeks.
The BTSGIF will debut on the Stock Exchange of Thailand (SET) on April 19.
"It's no surprise the IPO is priced at the top end of the initial price range due to the strong demand," said Jaroonpan Wattanawong, an assistant vice-president of Maybank Kim Eng Securities.
"The fund has characteristics of property funds [steady stream of returns] but upside from the potential increases in BTS ridership, fares and assets in case the fund wants to buy farebox revenue from other routes of the skytrain."The fund is backed by net farebox revenue of the skytrain's 23.5-kilometre core network comprising the Sukhumvit Line from Mor Chit to On Nut and the Silom Line from Saphan Taksin to National Stadium until December 2029.
It received almost 56,900 subscription applications from retail investors worth a combined 16 billion baht.
About 43% of the fund will be owned by foreign investors, 23% will be held by local retail and institutional investors, and BTS will take up the remainder.
The fund's distribution yield for the first year ending next March 31 is forecast to come in at 5.8%.
"The success of the IPO mirrors the confidence that local and international investors have towards Thai infrastructure development, especially the skytrain, the backbone of central Bangkok's mass transit system," said Keeree Kanjanapas, chairman of BTS Group Holdings Plc.
Morgan Stanley, UBS and Phatra Securities are managing the offering, while BBL Asset Management is the fund manager.
Shares of BTS closed yesterday on the SET at nine baht, down five satang, in heavy trade worth 1.53 billion baht.