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Thailand’s BAM announces pricing of stock market debut
Posted on Friday, 22 November 2019 11:19
Bangkok Commercial Asset Management (BAM) is pricing its shares at between THB 15.50 and THB 17.50 (USD 0.51 and USD 0.58), giving the distressed debt manager proceeds of THB 23.70 billion to THB 26.80 billion.

The company has been planning its initial public offering (IPO) since last year, according to media reports at the time, but officially filed its prospectus with the Stock Exchange of Thailand in August 2019.

BAM said it will offer up to 1.77 billion shares, of which 280.00 million are new and 1.26 billion are existing to be sold by Financial Institutions Development Fund.

The remaining 230.00 million stocks will be issued to underwriters of the deal as part of an overallotment option.

In total, BAM will list around 54.4 per cent of its outstanding share capital in the flotation, with reports saying it could raise as much as THB 35.00 billion.

Proceeds are expected to be used to buy non-performing assets from financial institutions, as well as to pay back debts and refinance its maturing bonds by the end of 2020.

Zephyr, the M&A database published by Bureau van Dijk, shows this IPO is the third-largest listing of a Thailand-based company announced in 2019 to date.

BAM aims to be Thailand’s best asset management company, with continuous net profit of over THB 4.50 billion in the last three years.

The group has more than 1,200 employees stationed at 26 offices across the country, with total assets of THB 111.67 billion as of the second quarter of fiscal 2019.

According to Zephyr, there have been 32 IPOs of Thailand-based companies worth USD 5.17 billion in 2019 to date, representing the largest value on record.

In the biggest of these, department store operator Central Retail announced plans to raise USD 2.00 billion in its stock market debut next year.

Asset World, S Hotels and Resorts, AIM Commercial Growth Freehold and Leasing and R&B Food Supply, have also unveiled plans to list.

© Zephus Ltd