Thai Life Insurance Plc traded flat on its debut in Bangkok, following the country’s biggest initial public offering this year.
The shares were at 16 baht, the same price as at the offering, as of 11.47am, after swinging between gains and losses. The Bangkok-based life insurer and two of its major shareholders sold a combined 2.32 billion shares, including a green-shoe option, to raise 37.1 billion baht ($1 billion).
It’s the largest debut on the Stock Exchange of Thailand since microfinance company Ngern Tid Lor Plc 14 months ago, and adds to a selected list of $1 billion-plus offerings in Asia this year. IPO proceeds globally slumped as a surge in inflation, rising interest rates and volatility in equities trading put new issuers on the sidelines.
Out of 29 companies that listed in Bangkok during the past five years after IPOs of at least $100 million, two-thirds finished their first session at a higher price than they listed, data compiled by Bloomberg show.
Thai Life’s listing could give scope for more sizable deals in Southeast Asia’s second-largest economy, with firms including SCG Chemicals Plc, a unit of Siam Cement Plc, and meat producer Betagro Plc planning offerings.
The insurer said it will spend 13.6 billion baht from new share sales for digital transformation, online distribution channel and other investments to maintain its leading position in the country’s insurance market.
Cornerstone investors snapped up about half of the total offering, according to terms of the deal obtained by Bloomberg News. Most of the commitment came from domestic buyers, which together bought about $312 million in shares. The international tranche was led by Singapore’s GIC Private Limited Fund.
Advisers for Thai Life’s international offering included Citigroup Inc, Bank of America Corp, Merrill Lynch and Nomura Holding Inc.