BANGKOK (Reuters) – Thai Life Insurance Pcl (TLI) said on Monday it was seeking to raise up to $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 ($971.20 million) for its first time share sale and up to 37 billion baht ($1.04 billion) if an overallotment option is exercised, TLI said in a filing https://bit.ly/3Oncb6R.
The IPO would be the largest equity capital market deal in Southeast Asia in 2022, according to Refinitiv data, with just $2.38 billion worth of IPOs in the region so far compared to $6.1 billion at the same stage last year.
Globally, IPO volumes have dropped 65.4% in the first half as investors remain wary of buying into new deals amid market volatility since Russia’s invasion of Ukraine, as well with inflationary pressures and interest rate rises in developed markets.
Thai Life is offering https://bit.ly/3u0J7tJ 2.1 billion shares, about 18.8% of total shares and a greenshoe option of 161.3 million shares.
TLI has a total premiums market share of 12.9% in the three 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% of net profits.
Insurance agents contributed to 68% 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 six 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.
($1 = 35.4200 baht)
(Reporting by Chayut Setboonsarng, additional reporting by Scott Murdoch in Hong Kong; Editing by Ed Davies, Martin Petty)
