Thai Life Insurance seeks to raise US$1b in July IPO

THAI Life Insurance (TLI) said on Monday (Jun 27) it was seeking to raise up to US$1 billion in an initial public offering (IPO) next month, pricing shares at 16 baht each in what could be the region's largest IPO this year.

It aims to raise 34.4 billion baht (S$1.35 billion) for its first-time share sale and up to 37 billion baht if an overallotment option is exercised, TLI said in a filing.

The IPO would be the largest equity capital market deal in South-east Asia in 2022, according to Refinitiv data, with just US$2.38 billion worth of IPOs in the region so far compared to US$6.1 billion at the same stage last year.

Globally, IPO volumes have dropped 65.4 per cent in the first half as investors remain wary of buying into new deals amid market volatility since Russia's invasion of Ukraine, as well as inflationary pressures and interest rate rises in developed markets.

Thai Life is offering 2.1 billion shares, about 18.8 per cent of total shares and a greenshoe option of 161.3 million shares.

TLI has a total premiums market share of 12.9 per cent in the 3 months ending in March. It booked net profits of 3.8 billion baht in the first quarter and has a dividend policy of at least 30 per cent of net profits.

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Insurance agents contributed to 68 per cent of premiums while a quarter came from partnerships, chief financial officer Michael Heang Ly told a news conference, noting TLI booked record profits last year of 8.4 billion baht.

IPO proceeds would provide working capital, support digital transformation and strengthen distribution channels with partners, the company said.

Cornerstone investors made up over half of the subscription and included 12 domestic funds and 6 foreign investors including Singapore's GIC and Oaktree Capital Management.

Books open for foreign investors on July 11 to 14 and on Thursday for local investors, TLI said. REUTERS