The initial public offering (IPO) is expected to be among the largest capitalisations in the primary market this year, which is expected to reach between Bt12 billion and Bt13 billion. Another is Bangkok Transit System, which will launch its IPO in the third quarter.

"We estimate that Thai Tap Water Supply will raise funds of about Bt3.5 billion. It has yet to fix the exact period for the share offering," Kasikorn Securities managing director for investment banking Vikran Paovarojkit said yesterday.

 Kasikorn Securities is acting as a financial adviser for Thai Tap Water Supply's IPO.

Thai Tap Water Supply managing director Sompho Sriphum was reported as saying the IPO could kick off in March. Forty per cent of the share allocation will be offered to foreign investors and the remainder to local investors.

It plans to allot one billion shares at Bt1 par value, of which 700 million will be newly issued and 300 million held by existing shareholders. The company's paid-up capital will be raised to Bt3.99 billion.

Following the share allotment, Ch Karnchang, Thai Tap Water Supply's largest shareholder, will see its holding dilute from 47 per cent to 36 per cent; Mitsui Water Holding's interest will be reduced from 35 per cent to 26 per cent; and Bangkok Expressway's from 12 per cent to below 10 per cent.

Thai Tap Water Supply holds a 30-year tap water supply agreement with the Provincial Waterworks Authority (PWA) to supply Nakhon Pathom and Samut Sakorn provinces.

Proceeds arising from the IPO will be used to expand the company's production capacity to 400,000 cubic metres per day by 2008 from 320,000 cubic metres now. The company currently produces 250,000 cubic metres per day under its contract with the PWA, but this will increase to 300,000 cubic metres in July 2008.

The Stock Exchange of Thailand earlier forecast that a combined 64 companies would list this year on the main board and the Market for Alternative Investment. Forty companies will go to the SET and the remainder to the MAI.