Protesters oppose listing for ThaiBev

ThaiBev, producer of Chang beer and a range of spirits, hopes to complete its listing by the year's end, according to its senior executive, Ueychai Tantha-Obhas. The company already lists on the Singapore exchange.

Kumron Chudecha, a protest leader, said the plan was being opposed because alcoholic drinks are bad for public health, society and the economy. In addition, the SET should not support the alcoholic beverage business, he said.

Kumron also said the listing plan appeared to have exploited the ongoing political conflict, since some of the key opponents who previously led the protest against ThaiBev's 2005 listing plan are now preoccupied with ousting the government.

Besides the SET, protesters will summit letters opposing the listing plan to the Finance Ministry and ThaiBev tomorrow.

While the government's tax collection on alcoholic drinks amounts to more than Bt72 billion per year, it is not worthwhile when considering the economic losses resulting from alcohol consumption, which are estimated to be Bt150 billion a year, said Kumron.

"Though Maj-General Chamlong Srimuang did not join the protest this time, we've decided to go ahead with our own plan to oppose the listing," said Kumron.

Naree Boontherawara, senior vice president of the SET, said the Securities and Exchange Commission would decide on ThaiBev's plan within 30 days.

Meanwhile, Pongphan Apinyakul, head of research at Kim Eng Securities, said ThaiBev's listing would not do much to change investor sentiment at this juncture, even though it would be a big-capitalisation stock.

ThaiBev plans to float 80 million shares in its public offering on the SET. The offering will represent 0.3 per cent of the company's shares.

Suthathip Peerasub of Kim Eng Securities (Thailand) said the target price for the ThaiBev stock could be revised upwards from the previous estimate of 0.30 Singapore dollars.

Kosin Sripaiboon, research head at UOB KayHian Securities (Thailand), said the economic slowdown would affect sales of beverages and alcoholic products. "Therefore, ThaiBev is not as attractive as before. Moreover, the business and its ads are now regulated more tightly," he said.

An analyst at Trinity Securities said that even though ThaiBev would be a big-cap stock, it could be difficult to boost sentiment in the Thai market amid the global financial crisis.

Thai Bev, one of Southeast Asia's biggest brewers and distillers, first attempted to list on the SET in 2005, but a major protest movement derailed the plan. The firm then turned to the Singapore stock market for listing in May 2006.