Two Thai firms to light up SE Asia’s IPO market with listings worth US$2.5 billion: sources

TWO Thai companies aim to raise as much as US$2.5 billion combined from initial public offerings (IPOs) on the Bangkok stock exchange, said two people with direct knowledge of the planned listings. The move could see both companies join a growing pipeline of South-east Asian IPOs this year.

Big C Super centre, the supermarket arm of Thai listed trading group Berli Jucker controlled by billionaire Charoen Sirivadhanabhakdi, could raise as much as US$1 billion in an IPO as early as the fourth quarter of this year, said the sources.

CPF Global Food Solution, a unit of Thai food conglomerate Charoen Pokphand Foods, is also expected to raise as much as US$1.5 billion and debut on the local stock exchange as early as the year-end, they said, declining to be named as the matter is confidential.

Big C and CPF Global Food did not immediately respond to Reuters’ requests for comment.

Both IPOs would solidify South-east Asia’s current status as a global IPO hot spot. Refinitiv data showed the IPO market in South-east Asia has grown this year, rising 6.9 per cent to US$2.66 billion as of mid-June. Apart from Japan, nowhere else in the Asia Pacific region, has shown growth.

The two listings would give a lift to Thailand’s IPO activity, which has raised US$454 million this year, according to Dealogic data. The last IPO of a similar size was Thai Life Insurance, which raised almost 35 billion baht (S$1.4 billion) in July last year.

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The IPOs could provide an insight into investors’ appetite for Thailand following the change in government last month.

Berli Jucker acquired Big C in March 2016, according to the company’s latest fact sheet posted on its website. Big C operates near to 2,000 stores including hypermarkets, supermarkets, convenience stores and pharmacies in Thailand, Laos, Cambodia and Vietnam.

Berli Jucker approved the IPO in March.

CPF Global Food Solution distributes fresh and processed food products in Thailand and overseas, according to its website. Its businesses comprise fresh meat, processed food, restaurants, pet food and other products including sauces and dairy, its website shows.

Charoen Pokphand filed for the IPO in April. REUTERS