ThaiBev plans dual listing this year
Inspired by the recent successful dual listing of Total Access Communication (DTAC), the Stock Exchange of Thailand (SET) looks forward to listing Thai Beverage this year to boost its market capitalisation to Bt6 trillion.
The brewer of Chang Beer went to Singapore last year after its planned offering in Thailand was blocked by social protests. The company has promised to seek a dual listing if the Securities and Exchange Commission (SEC) lets alcohol firms float shares to the public. It would be the second dual-listed firm after DTAC. SET president Patareeya Benjapholchai said yesterday that ThaiBev's market capitalisation of Bt100 billion would help push up the SET market capitalisation to Bt6 trillion from Bt5.7 trillion now. ThaiBev is the flagship business of liquor tycoon Charoen Sirivadhanabhakdi. Two refineries - Star Petroleum Refining and Esso (Thailand) - also plan to start trading on the local bourse this year. Patareeya forecast that the SET's capitalisation would rise to Bt7.5 trillion in anticipation of more dual and state-enterprise listings following the recent clarification of the privatisation law. Over the past several years, only PTT, Airports of Thailand and MCOT have entered the stock market. Other state enterprises lining up to list had to suspend their plans after a court ruled against the Electricity Generating Authority of Thailand's offering, as the royal decrees underpinning the proposed listing had to be scrapped due to conflict of interest and incomplete public hearings Vorapark Tanyawong, managing director of JP Morgan Securities (Thailand), estimates that foreign investor trading would reach at least Bt90 billion on improvements in public order and politics, and greater certainty that the general election would be held later this year. Local shares remain cheap with a price-to-earnings ratio of less than 10 times, compared to 17-18 times in emerging markets in general. His securities house has set the 12-month SET index target at 870 points, assuming earnings rise of 4 per cent, P/E advances to 12 times, and the energy sector - which already has the highest weighting on the SET - increases its market cap. He personally would like to see ThaiBev list here to lend mass to the stock market.
Siriporn Chanjindamanee The Nation
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