CRC shares end lower on debut
published : 20 Feb 2020 at 17:27
updated: 20 Feb 2020 at 18:08
writer: Darana Chudasri
The share price of SET-listed Central Retail Corporation Plc (CRC) ended in the red on the first day of trading Thailand's largest-ever market capitalisation equity on Thursday, amid sentiments blighted by the Covid-19 epidemic.
The price closed at 41.75 baht, down 25 satang, or 0.60%, from the IPO price of 42 baht per share.
CRC share price moved within a range of 41.50-42.25 baht in turnover averaging 7.5 billion baht.
CRC is reportedly raising 78.1 billion baht in funds after setting the IPO price at 42 baht for no more than 1.69 billion IPO shares and an over-allotment option of 169 million shares.
CRC, Thailand's biggest retailer and the retail arm of Central Group, is a holding company investing in multi-format and multi-category retail platforms in Thailand, Italy and Vietnam.
The current share price is acceptable amid lacklustre sentiment in equity trading given several organisations have revised down Thailand’s GDP growth outlook this year, according to executives from Phatra Securities and Bualuang Securities, CRC’s main underwriters.
A greenshoe option of 169 million shares, representing 10% of total IPO shares, can be exercised when the IPO price trades below 42 baht per share and must be exercised within 30 days.
If such option is exercised, it would be on a gradual basis in accordance within stock market conditions, said Anuwat Ruamsuke, managing director of Phatra Securities.
The SET index, meanwhile, plunged 14.30 points or 0.95% to 1,491.24 in turnover worth 54 billion baht.
Shares of Airports of Thailand Plc saw the most sell-off, down 4.80%, followed by CRC (-0.60%) and Siam Commercial Bank (-4.63%).
Stocks came under pressure after Japan reported two deaths from the coronavirus and cases in South Korea jumped, spurring concerns about the spread of the disease outside China, Bloomberg reported.