Phillipine and Thai IPOs close at a total of almost US $ 1.9 billion
The largest ever initial public offering by a Thailand firm, Asset World Corporation, recently closed a with a target of US $1.6 billion and will start trading on Thursday. Meanwhile the Philippines-based AllHome closed its IPO at $285 million, making it the biggest in the last 3 years in its respective country.
Owned by the Philippines' richest man, Manuel Villar, the company raised 12.937 billion pesos (US $ 345.2 million) in total. "The home improvement industry in the Philippines is underpenetrated so we thought of introducing a retail concept with global standards which eventually complements our expertise as the largest homebuilder in the country," he said in a statement. AllHome hired UBS as its sole global coordinator and joint bookrunner with CLSA and Credit Suisse.
"We expect Thailand to be one of the stronger IPO markets in 2020. Some more large IPOs have started preparations this year and are set to list next year," said Ho Cheun Hon, head of South-east Asia equity capital markets at Credit Suisse.
Asset World Corp, the hospitality and property firm listed by Thai billionaire Charoen Sirivadhanabhakdi, is the third startup company in the country with its sights on the industry. Half of the company’s shares belong to just 13 investors, including the fund GIC, which has invested about US $300 million.
In 2019, Singapore still leads on overall first time share sales in South-east Asia, but this is accomplished primarily through real estate and business trust IPOs. However, when excluding data from real estate and business trust in Thailand, 11 companies raised a total of US$1.9 billion from January to October. This is a considerable increase when compared to only five firms raising less than US$100 million in the same period just one year ago, as shown by Refinitiv data.