CK Power (CKP), a subsidiary of Ch. Karnchang Plc, is proceeding with its plan to go public by launching an initial public offering (IPO) next week after the stock market has stabilised.
The IPO subscription period is slated for July 10-12, and the shares will trade on the Stock Exchange of Thailand (SET) this month, said Kongkiat Opaswongkarn, the chief executive of Asset Plus Securities, one of the lead underwriters.
CKP, which invests in power ventures, will sign underwriting agreements on Monday.
SCB Securities, Bualuang Securities and KT Zmico Securities are also lead underwriters for the IPO. Siam Commercial Bank, Krung Thai Advisory and Advisory Plus are the financial advisers.
"The storm has calmed down already," said Mr Kongkiat, referring to the easing of recent heavy sell-offs by foreigners as they exited emerging markets including Thailand.
"There is no need to wait for the SET index to return to prior levels, as CKP has business plans and is well prepared to raise funds," he said, adding that CKP is in a relatively stable industry.
The company's latest movement marked a step closer to becoming the first Thai holding company with its main operations abroad to list on the Thai bourse.
According to its plan, the company will sell 220 million IPO shares at a par value of five baht apiece.
Of the total, 180 million of which will be new shares and the rest existing shares held by company stakeholders.
CKP is a holding company with a 56% stake in South East Asia Energy Co, which owns 75% of the Nam Ngum 2 hydropower plant in Laos, and considerable stakes in three solar power plants.
Earlier, CKP announced it would put off the IPO plan set for this month, citing market turbulence.
Founded in 2011, CKP is owned by Ch. Karnchang (38%), Bangkok Expressway Plc (30%), Thai Tap Water Supply Plc (30%) and the Bangpa-in Industrial Estate (2%).
The SET index dipped almost 17% to the year's closing low at 1,364.09 points on June 24 from the year's closing peak at 1,643.43 points on May 21 as the US Federal Reserve's tentative time frame on the stimulus curb has kept investors on edge.
Thai shares have rebounded by 5.66% from the trough to close the market at 1,441.33 points yesterday.
The Fed recently said it will start winding down its US$85-billion-a-month asset purchases this year and terminate the programme in mid-2014 if the US economic recovery gains sustainable traction.
An unnamed SET source said two or three companies planning IPOs next month are also sticking to their plans.
Mr Kongkiat said IPOs are expected to continue their boom in the third quarter, as many companies are lining up to seek a listing on the SET or the MAI.
About the author
- Writer: Darana Chudasri
Position: Business Reporter