Thai Life Insurance seeks to raise B37bn in July IPO

Thai Life Insurance seeks to raise B37bn in July IPO

Thai Life Insurance Plc (TLI) said on Monday it was seeking to raise up to 37 billion baht in an initial public offering (IPO) next month, pricing shares at 16 baht each in what could be the region's largest IPO this year.

It aims to raise 34.4 billion baht for its first time share sale and up to 37 billion baht if an overallotment option is exercised, TLI said in a filing.

The IPO would be the largest equity capital market deal in Southeast Asia in 2022, according to Refinitiv data, with just $2.38 billion worth of IPOs in the region so far compared to $6.1 billion at the same stage last year.

Globally, IPO volumes have dropped 65.4% in the first half as investors remain wary of buying into new deals amid financial market volatility from Russia's invasion of Ukraine, inflation and interest rate rises in developed markets.

Thai Life is offering 2.1 billion shares, about 18.8% of total shares and a greenshoe option of 161.3 million shares.

TLI has a total premiums market share of 12.9% in the three months ending in March. It booked net profits of 3.8 billion baht in the first quarter and has a dividend policy of at least 30% of net profits.

IPO proceeds would provide working capital, support digital transformation and strengthen distribution channels with partners, it said.

Cornerstone investors made up over half of the subscription and included 12 domestic funds and six foreign investors including Singapore's GIC and Oaktree Capital Management. 

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