PTT Oil surges in Bangkok debut after US$1.57b IPO

Bangkok

PTT Oil & Retail Business, the retail unit of Thailand's biggest energy company, jumped in its trading debut after raising US$1.57 billion in the country's biggest initial public offering in almost one year.

Shares climbed as much as 50 per cent to 27 baht in the early morning session in Bangkok. The company sold 2.61 billion shares to the public at 18 baht, the top end of the marketed price range. The company also has a so-called greenshoe option of 390 million shares.

PTT Oil becomes the third mega Thai IPO in the past year after Central Retail's record US$2.5 billion offering in February last year and SCG Packaging's US$1.3 billion share sale in October. PTT Oil's IPO drew more than 500,000 subscriptions from retail investors, the highest ever booking by number of investors, according to the company's statement.

Equity offerings have been proving exceedingly popular of late, with many companies popping on their debuts. Ultra-low interest rates and expectations of more stimulus have stoked a stock rally and boosted demand for share sales, while leading some to warn of frothy markets.

The Thai stock exchange's daily trading turnover averaged about 94 billion baht (S$4.2 billion) so far this year, a 50 per cent jump from the same period a year earlier, boosted by new retail investors, according to the bourse's data.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

Last week, Chinese short-video app Kuaishou Technology surged 161 per cent on its debut in Hong Kong, the second-best ever for an IPO of over US$1 billion. About one of every five people in the financial hub submitted orders for shares, a record number.

Plentiful cash and coronavirus-induced lockdowns have led to an increase in retail trading globally, which has contributed to some volatile stock moves as seen with GameStop, as well as hugely oversubscribed share sales. BLOOMBERG