PTT Pcl has approached potential advisers as it weighs options including an initial public offering for its retail business, people with knowledge of the matter said.
PTT Pcl reportedly has approached potential advisers as it weighs options including an initial public offering for its retail business. An IPO of the unit, which operates PTT’s service stations like this one, could raise more than $2 billion. (Photo by Phrakrit Juntawong)
PTT has reached out to banks to solicit proposals for advising on a deal, said the people, who asked not to be named discussing private deliberations. An IPO of the unit, which operates PTT's service stations, could raise more than $2 billion, they said.
At that size, it could become Thailand's biggest-ever IPO, overtaking the $2.1 billion sale by BTS Rail Mass Transit Growth Infrastructure Fund in April 2013, according to data compiled by Bloomberg. PTT is exploring options for the unit after China Petroleum & Chemical Corp last month agreed to sell a $17.5 billion stake in its retail operations to a group of investors.
PTT will probably appoint banks to advise it on the restructuring in November, one of the people said. Chief Executive Officer Pailin Chuchottaworn in June told the media the company may list the retail unit, without saying how much an IPO could raise. A call to PTT Chief Financial Officer Wirat Uanarumit went unanswered.
PTT operates 1,382 service stations across Thailand, according to the company's 2013 annual report. In 2007, it acquired ConcoPhillips' fuel stations and Jiffy convenience stores in the country for $281 million, data compiled by Bloomberg show.
In April, PTT's oil and natural gas explorer unit, PTT Exploration & Production Pcl, agreed to pay about $1 billion cash for Hess Corp.'s stakes in oil and gas assets in Thailand.