BTS fund raises B62.5bn
An infrastructure fund backed by revenues from the BTS SkyTrain has raised 62.5 billion baht in the biggest initial public offering in Thai history.
- Published: 5/04/2013 at 07:48 PM
- Newspaper section: breakingnews
The BTS Rail Mass Transit Growth Infrastructure Fund is also the third largest IPO to take place worldwide this year.
The fund sold 5.79 billion units at 10.80 baht apiece, said Keeree Kanjanapas, chairman of BTS Group Holdings Plc. The price was at the top end of the range of 10.40 to 10.80 baht that underwriters had set earlier, reflecting heavy investor demand despite volatile markets in recent weeks.
The fund attracted almost 56,900 subscription applications worth a combined 16 billion baht from retail investors.
About 43% of the fund will be owned by foreign investors, 23% by local retail and institutional investors, and BTS will take up the remainder.
Units of the fund will begin trading on the Stock Exchange of Thailand on April 19 under the symbol BTSGIF.
The fund will buy rights to fare revenue from the SkyTrain. BTS plans to use proceeds from its sale of the fare rights to extend the rail network.
The value of the IPO was nearly double the 32.5 billion baht raised by Thai Oil Plc in 2004, the country's largest IPO to date.
The fund's distribution yield for its first year ending next March 31 is forecast at 5.8%.
"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 [a 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 BTS SkyTrain, consisting of 32 stations with a combined track length of 32.7 kilometres, carried 176 million passengers in the fiscal year ended March 31, 2012, according to the IPO prospectus.
It posted sales of 4.3 billion baht for the period, up from 3.5 billion a year earlier.
About the author
- Writer: Post Reporters and Bloomberg