Bangkok Airways Pcl, Thailand’s oldest private carrier, is poised raise 13 billion baht ($402 million) in its initial public offering, people with knowledge of the matter said.
The carrier plans to price its sale of 520 million new shares at 25 baht apiece, the midpoint of a marketed range, the people said, asking not to be identified as the information is private. The secondary portion of the IPO, which originally included 105 million shares being sold by existing investor Poramaporn Prasarttong-osoth, may be reduced, they said.
The offering adds to the $2.2 billion raised by first-time share sales in Thailand this year, data compiled by Bloomberg show. Bangkok Airways, led by Chief Executive Officer Puttipong Prasarttong-osoth, plans to use the proceeds to buy 18 new planes from Boeing Co. and Airbus Group NV and renovate airport facilities, it said in a media briefing last week.
“It’s unfortunate that the IPO comes at a time of weak sentiment in the global equity market,” Jintana Mekintharanggur, director of equity investment at Manulife Asset Management Co., which manages about $278 million of assets, said by phone from the Thai capital. “Bangkok Airways has the least volatile earnings among domestic airlines.”
Bangkok Airways offered the shares at 23 baht and 27 baht each, according to terms for the deal obtained by Bloomberg News. Bangkok Bank Pcl planned to buy another 105 million shares from existing investors at the same time as the IPO, the terms show.
The carrier plans to start trading on Nov. 3, according to a previous filing. A spokesman for Bangkok Air declined to comment.
Bualuang Securities Pcl, Citigroup Inc., Credit Suisse Group AG and DBS Vickers Securities (Thailand) Co. are arranging the sale.
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