Pace plans IPO by end of July

Pace Development Corporation plans an initial public offering (IPO) of 600 million shares this month after receiving approval from the market regulator.

The property developer has registered capital of 2.05 billion baht including 1.454 billion in paid-up capital at the price of one baht a share.

Pace plans to offer 29.2% of its paid-up capital through its share offering.

Chief executive Sorapoj Techakraisri said the listing plan remains on schedule despite this year's market volatility, as the company is confident of the soundness of Thai economic fundamentals and the local stock market, both of which still has substantial room to grow.

Pace is the developer of high-end projects with a total value of 24 billion baht including Ficus Lane and the Saladaeng Residences.

The Ritz-Carlton Residences recently saw sales of 420 million baht at a roadshow in Dubai, bringing total presales to 6 billion for more than 50% of the units.

Units of the Ritz-Carlton will be in MahaNakhon, tapped to be Bangkok's tallest mixed-use development.

Construction of MahaNakhon has begun and will be completed in 2015.

Funding is mainly from a syndicated loan led by Siam Commercial Bank and Tisco Bank.

Mr Sorapoj said after the IPO, Pace will buy back MahaNakhon shares from Industrial Buildings Corporation to increase its stake in MahaNakhon to 68% from 50% at present.

The move will provide Pace with greater flexibility in terms of project management.

After its stock market listing, Pace will use most of the IPO proceeds to develop new projects, with a firm focus on high-potential areas in central Bangkok and resort locations such as MahaSamutr Development in Hua Hin.

Combined project value of the Hua Him development and one on Lang Suan Road is 8.7 billion baht.

Kongkiat Opaswongkarn, the chief executive of Asia Plus Advisory Co, Pace's financial adviser, said the IPO is scheduled this month so that official trading in the stock market can start early next month.