Small investors own half of B45bn Thailand Future Fund

Small investors own half of B45bn Thailand Future Fund

The Thailand Future Fund invests in the right to toll collections of the Expressway Authority of Thailand. (Bangkok Post file photo)
The Thailand Future Fund invests in the right to toll collections of the Expressway Authority of Thailand. (Bangkok Post file photo)

The 44.7-billion-baht Thailand Future Fund (TFFIF), an infrastructure fund launched by the government, has drawn overwhelming interest from the public, according to the Finance Ministry.

Of the total value, 2.88 billion units were bought by the public in 41,200 bookings, averaging 700,000 baht each, said Prapas Kong-Ied, director of the State Enterprise Policy Office under the ministry.

The IPO offering was made during the Oct 12-19 and the price was later set at the top end of the indicated range, or 10 baht each.

The fund will begin trade on the Stock Exchange of Thailand on Oct 31, he added.

Charnwit Nakburi, deputy director and spokesman of the office, said after the sale, the public owned 50% of the fund, followed by institutional investors (40%) and the Finance Ministry (10%).

The fund invests in the right to 45% of toll revenue of the Expressway Authority of Thailand on the Chalong Rat (Ram Intra - At Narong) expressway and Burapha Withi (Bang Na) expressway, totalling 83.2km, over 30 years.

Proceeds from the fund's IPO will be used to finance construction of the expressway linking Rama III Road-Dao Khanong and the Western Outer Ring Road, worth 30.4 billion baht, as well as the third stage of the long-delayed northern expressway linking the Kasetsart intersection and Nawamin Road, also known as the N2 section, worth 14.4 billion baht.

Analysts estimated the yield to be around 5% a year as the prospectus projected it to be in a range between 4.75% and 5.3% in the first year. Its dividends will also be tax-exempt in the first 10 years.


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