The energy giant PTT Plc may delay the listing of its power subsidiary Global Power Synergy Co (GPSC) on the Stock Exchange of Thailand (SET) due to unfavourable market sentiment.
GPSC had planned to float shares on the SET by mid-2014, but chief financial officer Surong Bulakul yesterday said the plan might be postponed to the third or fourth quarter.
"Sentiment in the Thai stock market is not attractive now due to the prolonged political turmoil. Consequently, a delay by one or two quarters would be appropriate," said Mr Surong, also GPSC's chairman.
But GPSC has continued naming financial advisers including Tisco Securities, KT Zmico Securities and Finansa Securities to prepare for the initial public offering (IPO).
Shareholders of GPSC include PTT Global Chemical Plc at 30.3%, PTT at 30.1%, Thaioil Power Co at 27.7% and Thaioil Plc at 11.8%.
GPSC projects to increase power generating capacity to 2,000 megawatts by 2019 from 1,063 MW at present.
The additional capacity will come from small power producer projects of PTT's subsidiary IRPC Plc in Rayong province and Xayaburi Hydropower project in Laos.
Mr Surong said GPSC is also studying the feasibility of investing more in the hydropower plant in Laos and a gas-fired power plant in Myanmar as well as in the Philippines.
"The power business has high potential in Asean, as less than 60% of the population in seven of the 10 countries have access to electricity," he said.
GPSC targets expanding capacity to 6,000 MW by 2022 from locations in Thailand, Myanmar, Laos and Indonesia.
Renewable energy would account for 5-10% of total capacity, he said.
The company expects revenue to be on a par with last year at 24 billion baht, with net profit also unchanged at 1.15 billion, as no new capacity will come on stream this year.
President Jakchai Barlee said GPSC estimated it would raise 7-8 billion baht from the IPO, to be used for business expansion and as working capital.
Yesterday, GPSC signed a syndicate loan agreement worth 8.6 billion baht with Krungthai Bank, Bank of Ayudhya, Tisco Bank, the Government Savings Bank and Mizuho Corporate Bank.
Of the total amount, 8 billion is classified as long-term loans.
Mr Surong said capacity expansion should be 30% domestic and 70% elsewhere in Asean including greenfield projects and acquiring productive assets.
Shares of PTT closed yesterday on the SET at 293 baht, up three baht, in heavy trade worth 1.51 billion baht.