Rayong sets IPO price
Rayong Refinery Plc will start trading on the stock market on June 5, its president Chainoi Puankosoom said yesterday.
The company will sell about 1.38 billion shares, of which 520 million will be newly issued and the remainder existing shares currently held by PTT Plc. A further 200 million will be reserved in case the shares are oversubscribed.Chainoi said 479.5 million shares would be sold to retail investors, 698 million to foreign investors and 220 million would be allotted to local institutional investors. The initial price range has been set at Bt18 and Bt23 a share. At the higher price, the sale would raise about Bt32 billion, making the deal one of the country's largest ever IPOs. The Thai Oil IPO of late 2004 generated Bt32.6 billion. Subscriptions will be accepted on Thursday and Friday, Chainoi said, with the final IPO price announced on May 25. Shares for retail investors will be allotted at branches of Bangkok Bank, Krung Thai Bank, and TMB Bank. PTT's stake in the refinery will fall to 50 per cent after the IPO. Proceeds from the share sale will be used to expand and upgrade refinery complexes. Its current capacity is 145,000 barrels of oil per day. Anuwat Ruamsuke, vice president of Phatra Securities Plc, said the refinery would hold road shows in London, Singapore and the US next week. The company last year posted a net profit of Bt11 billion, up from Bt7.6 billion in 2004 and Bt4 billion in 2003. It posted a net profit of Bt2.3 billion in the first quarter of this year. Siriporn Chanjindamanee The Nation
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