PTT Oil and Retail's (OR) initial public offering (IPO) subscription is expected to draw thousands of new investors to the Thai stock market, with novel trading accounts likely to exceed 35,000 this month.
The subscription period ends next Tuesday, with share allocation the next day. Trading is expected to begin on Feb 11.
Bualuang Securities reported nearly 20,000 new account applications, while Kasikorn Securities tallied 15,000. The number of new retail subscriptions through bank sales agents and underwriters has not yet been reported.
OR said it attracted about 200,000 share subscribers in the first two days of the subscription period, and estimates the IPO will reach a total of 1 million retail subscribers.
"All retail investors should get an OR share allotment," said Pichet Sithi-Amnuai, president of Bualuang Securities, which is the manager and underwriter for the IPO.
Mr Pichet said there are enough available shares for 1.95 million people to purchase the minimum allotment of 300 shares each. If fewer people subscribe, then investors can exceed the minimum.
The total share portion for retail investors would be 1.036 billion shares.
Even brokers not tasked with underwriting or managing the IPO reaped benefits from new account subscriptions and increased trading volume over the past few weeks.
Padermpob Songkroh, managing director of Yuanta Securities (Thailand), said the IPO has stirred up business for the firm over the past two weeks with a surge of new accounts set up to purchase OR shares.
"New accounts increased as we now have account e-opening that can process the know-your-customer rules online," he said. "Many mutual fund investment clients told us they want to try equity investment in stocks and picked this share."
Managers and underwriters for OR's IPO subscription are Bualuang Securities, Kasikorn Securities, Kiatnakin Phatra Securities, Tisco Securities and Finansa Securities, while Bangkok Bank, Kasikornbank and Krung Thai Bank are selling agents.