Thai Life Insurance (TLI), the country's second-largest life insurer, announces an initial public offering (IPO) price of 16 baht per share as it plans to raise up to 37 billion baht in its primary stake sale.
TLI is offering up to 2.1 billion shares, consisting of roughly 1.2 billion existing ordinary shares offered for sale by V.C. Sombat Company Ltd and 138.5 million shares ordinary shares offered by Her Sing (H.K.) Ltd.
The IPO shares make up a maximum of 18.8% of the company's total issued and paid-up ordinary shares, valued at not more than 37.067 billion baht in the case of overallotment.
The reservations for share purchases are set to be available to individuals at the discretion of the underwriters, people who are affiliated with the company, and company employees from June 29 to July 6.
The lead underwriters and co-underwriters comprise Kiatnakin Phatra Securities, Krungsri Securities, CGS-CIMB (Thailand) Securities, Capital Nomura Securities, KGI (Thailand) Securities, Asia Plus Securities, Tisco Securities, Thanachart Securities, Bualuang Securities, Yuanta (Thailand) Securities, SCB Securities and Aira Securities.
With the IPO proceeds, the company plans to invest 2 billion baht in digital technology as well as marketing, while 5.4 billion baht is earmarked to strengthen distribution channels through partners.
Another 6.2 billion baht is allocated to provide working capital for the company and other purposes.
According to the Thai Life Assurance Association, TLI had a total premium market share of 14.7% in 2021 and 12.9% for the first three months of 2022.
As of March 31, the company has more than 64,000 insurance agents covering all 77 provinces nationwide, of which 23,000 are from the management level and above.