Thai Life locks in major cornerstone investors for $1 billion IPO

HONG KONG : Thai Life Insurance’s initial public offering (IPO), aiming to raise up to $1.04 billion, will be sold to 18 domestic and international cornerstone investors.

These investors will account for about 50 per cent of the IPO, the largest in Southeast Asia so far in 2022, according to a term sheet seen by Reuters. The bookbuilding process will open Thursday.

Thai Life did not immediately respond to a request for comment.

GIC Pvt Ltd is the largest among international cornerstone investors – those who commit in advance to invest a fixed amount of money, or for a fixed number of shares, in an IPO – and has subscribed for about $164 million worth of shares followed by Oaktree Capital and Ghisallo Master Fund, according to the term sheet.

On the domestic front, the asset management arms of Siam Commercial Bank , Kasikorn and Krungsri are the biggest major local investors to subscribe for stock.

Thai Life aims to raise $972 million for its first-time share sale and $1.04 billion if an overallotment option is exercised, the company said in a filing on Monday.

Retail investors in Thailand will have access to $318 million worth of stock, the term sheet said.

Follwing the deal, Thai Life will have an implied market capitalisation of about $5.2 billion.

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

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.


Source: Reuters