PTT Plc will postpone a listing for its power business arm Global Power Synergy Co (GPSC) to early next year, citing unfavourable market conditions at present.
A PTT source said postponement of GPSC's initial public offering (IPO) was due mainly to the ongoing political impasse.
"Next year will be the right time to list GPSC instead of the this year's third or fourth quarter as originally planned," said the source.
Under the plan, PTT expects to mobilise 7-8 billion baht from the IPO, in which 25-30% of GPSC will be offered to the public.
Proceeds will be used to develop generating capacity of more than 2,000 megawatts in the coming years.
Initially, PTT's hydropower assets in Laos including the Nam Lik 1 dam would be transferred to GPSC, raising the latter's power generation capacity to 1,272 MW from 1,038 MW as of last year.
Tisco Securities, KT Zmico Securities and Finansa Securities are GPSC’s financial advisers.
PTT has positioned GPSC as a vehicle to expand its power business including hydro and other kinds of power plants in Myanmar, Laos, the Philippines, Vietnam and Indonesia.
The oil and gas conglomerate could synergise its power and coal mine businesses including its mines in Indonesia and Madagascar.
Set up in January 2013, GPSC was formed by a merger of PTT Utility Co and Independent Power (Thailand), the latter a subsidiary of Thaioil Plc, with registered capital of 11.2 billion baht.
Its shareholders are PTT (30.1%), PTT Global Chemical Plc (30.31%), Thaioil (11.88%) and Thaioil Power Co (27.71%).
PTT expects the power business will generate 10% of annual revenue by 2022 from less than 3% last year.
"The power business generates consistent revenue and will help to leverage oil business risks when global oil prices are volatile," said the source.
PTT shares closed yesterday on the Stock Exchange of Thailand at 294 baht, down two baht, in heavy trade worth 1.93 billion baht.