National oil and gas conglomerate PTT Plc insists it will not delay the initial public offering (IPO) of its oil retail unit PTT Oil and Retail (OR) despite the weak economy because it is determined to raise funds for non-oil business expansion, which will not be limited to Cafe Amazon coffee shops.
PTT president and chief executive Auttapol Rerkpiboon said on Wednesday OR is in the process of IPO subscription and share prices should be revealed soon.
Mr Auttapol said PTT is confident the IPO will be a success, raising funds for expansion even during an economic downturn.
The IPO scheme for OR was drafted in 2019, but transferring assets from PTT to OR required more time than expected.
"Investment during an economic recession will benefit us because once the global economy returns to normal, we can serve rising demand on time," he said.
The IPO subscription is expected to raise between 43.2 and 54 billion baht, based on a preliminary share price of 16-18 baht.
OR is planning to expand its non-oil business as the company faces stiff competition from oil retailers.
The company will not only focus on food and beverage at petrol stations, but also is considering operating other businesses, said Mr Auttapol.
Recently OR injected capital into local startup Flash Express Co, seeking an opportunity to provide express transport services at its petrol stations nationwide and in the region.
OR president and chief executive Jiraphon Kawswat said the bourse listing will make OR the seventh flagship business of PTT Group.
OR announced on Wednesday a business expansion plan running from this year to 2025 with a 74.6-billion-baht budget, including money from the IPO.
Under the plan, the company wants to increase its number of gas stations from 1,968 to 2,500 by 2025, both domestically and across the region.
OR plans to increase its Cafe Amazon shops from 3,168 to 5,300 branches across Asia by 2025, said Mr Jiraphon.