Bangkok Life to press on with IPO despite political situation

Chan Vathanakul, president of the company, said yesterday that institutional and individual investors had warmly welcomed the stock during recent roadshows, which raised public awareness in the company.

"Under the indicative prices, we will raise Bt2.5 billion to Bt2.8 billion from the IPO. The price should be finalised after the book-building late this month, when market sentiment will be taken into account," Chan said.

He attributed the company's business potential to a rise in public confidence as well as the government's savings-promotion policy, which doubles the tax-deductible amount from life-insurance policies.

Bangkok Life Assurance is also reaching out to more potential clients, not least via the recent agreement to sell policies through Bangkok Bank's branch network.

The company's IPO to sell 200 million shares was originally slated for earlier this year, but was delayed due to the political conflict. Chan said the revised October schedule would be maintained, as the company believes from its periodic assessment that the political situation is now over the worst.

"We're also confident in our business fundamentals. Short-term political risks should not affect the company's operations," he added.

Proceeds from the IPO will be used to boost working capital and the firm's capital fund.

Bangkok Life Assurance earned Bt7.8 billion in revenue in the first half of the year, up 25.38 per cent from Bt6.2 billion in the same period last year. The company posted a Bt1.2-billion profit from investment, up 21.98 per cent year on year.

However, its net profit was Bt500.86 million, down 0.15 per cent on the year.