TSFC Securities Ltd, the Small and Medium Enterprise Development Bank of Thailand (SME Bank), Thai Rating and Information Services Co, Satellite Service Co and Imperial Technology Management Service Co are among the stocks to go under the hammer.

Banchang Group, owned by politically connected Pairoj Peampongsan, is another stock up for bid.

The stocks belonged to 56 finance companies and became the FIDF's assets after the fund injected a massive amount of money in a failed bid to bail them out.

The fund also owns stocks of 47 listed companies, which will be disposed of in the stock market.

Phairoj Hengsakul, a Bank of Thailand assistant governor, said yesterday many of the firms boast a good performance record and a bright future for their operations. They are in sectors such as property, service and manufacturing.

For example, TSFC Securities is the only company holding a licence to extend margin loans through brokers.

About 28.7 million shares or 30 per cent of TSFC's total shares will be put up for sale, he said.

"It's a good opportunity as the [bidding] winner will become a major shareholder and dominate the company's policy," Phairoj said.

Some of the companies have posted net losses but earnings are expected to improve, he said. The expected prices are marked up from book value, he added.

Stock valuations are based on financial statements, historic prices at sales and the opportunity to make a profit in the future.

Phairoj believes the fund will receive more than the stocks' appraised value of Bt700 million.

The first attempt to auction off the stocks in March flopped as the central bank refused the offers.

The higher the bidding prices, the lower the FIDF's burden. "Last time, the bidders did not have a chance to analyse financial statements. But they now can see the companies' bottom lines as of June at the Commerce Ministry," he said.

Despite the gloomy economic sentiment, the fund is optimistic about the auction. Phairoj said the economy would continue to grow by 4.5 per cent, which was satisfactory compared with other countries.

"The economy is growing slower than last year but that doesn't mean that the future will get worse. Investors should consider the future outlook and business opportunities," he said.  Bids will be taken until the end of July and the results announced on July 31.

The fund's recent auction of 54 pictures seized from the 56 finance companies sold out for a combined Bt36 million, or 160 per cent of the appraised value, he said.

Another batch of 29 pictures will be put on the block this Sunday with starting prices from Bt55,000 to Bt500,000. Another lot of 55 pictures is going through legal proceedings as their former owners filed suit against their sale.

Anoma Srisukkasem

The Nation