OR's IPO generates public appeal
PTT Oil and Retail Business's (OR) IPO garnered strong investor demand on its first day of retail subscriptions on Sunday, but many were unable to access distribution channels to purchase the stock due to three bank applications becoming unresponsive following high traffic.
OR and the banks have announced through various channels subscription will continue until 12pm on Feb 2. The company will allot the shares to smaller purchases first, regardless of the subscription date.
Of 3 billion shares, including 390 million shares from overallotment, 600 million shares will be restricted to retail investors.
Ms A, a 49-year-old individual who requested anonymity, said this is her first time investing in equities. She opened a security trading account with Bualuang Securities and put 250,000 baht for the OR subscription on her friend's recommendation.
"I have not been involved in high-risk investments since I lost about 2 million baht to cryptocurrency trading over the past 2-3 years," she said.
An officer at Bangkok Bank's Siam Paragon branch said more people came to the bank on Sunday than on Monday as it was the weekend.
OR and banks insist that the retail subscription for the OR's IPO will continue to Feb 2, giving enough time for buyers despite some purchasing interruptions.
Retail investors are required to subscribe to at least 300 shares or 5,400 baht, and can buy increments of 100 shares to 400, 500 or 1,000 if they want more shares than the minimum.
Pattera Dilokrungthirapop, chief executive officer of DBS Vickers Securities Thailand said OR's IPO is being well-received by the public because people are familiar with the company.
"People are seeking higher returns for their savings and they tend to invest in companies that are tangible and visible," she said.
Mrs Pattera said OR is a subsidiary of PTT, one of the country's largest conglomerates and an SET50 member. Investment in OR shares is less risky than other assets as it has high liquidity and strong fundamentals.
OR is likely to end up the country's largest IPO deal this year, with total shares worth up to 54 billion baht, including overallotment, at the maximum offering price of 18 baht.
The final IPO price is expected to be announced by Feb 3 at 9am via the websites of OR (www.pttor.com) and the Stock Exchange of Thailand (www.set.or.th).
Retail investors can subscribe via Kasikorn Bank, Bangkok Bank, Krungthai Bank through online platforms and physical branches, or through brokers with whom they have trading accounts.