'Strong Interest' In Thai Airasia IPO

[Lite Beer]

'Strong interest' in Thai AirAsia IPO

Bangkok, May 23, 2012 (AFP) - Thai AirAsia's top shareholder has reported strong demand for its shares in an initial public offering that will raise funds for a fleet expansion at the fast-growing low-cost carrier.

Asia Aviation PCL, which owns 51 percent of Thai AirAsia, said there was an "overwhelming response" from institutional investors, with the offer 10 times oversubscribed during the process to determine the initial share price.

It plans to offer about 1.2 billion shares -- a stake of about 25 percent -- for 3.70 Thai baht (12 US cents) each during May 23-25, which would raise $143 million, according to a statement received on Wednesday.

The group will use part of the proceeds to increase its stake in Thai AirAsia to 55 percent with the purchase of new shares, enabling the airline to double the size of its fleet within the next five years, it said.

"This is another crucial step that will stabilize Thai AirAsia's financial status and allow the company to march forward to its planned goal," Asia Aviation chief executive Tassapon Bijleveld said.

"We aim to grow at least 20-25 percent from 2011, which will be supported by our new fleet, new route plans and flight frequency increase on potential routes."

Malaysia-based AirAsia has grown rapidly since former record industry executive Tony Fernandes bought the failing airline in 2001.

Its route system has spread throughout Asia and beyond, and the company has set up subsidiaries in Thailand, Indonesia, and the Philippines.

AirAsia first announced in late 2010 that it planned to list its Thai joint venture by the end of 2011 but the plan was delayed amid adverse market conditions.

Thai AirAsia currently serves more than 30 airports in Thailand and overseas, with a fleet of about two dozen Airbus A320 planes.

-- (c) Copyright AFP 2012-05-23

[Payboy]

3.70 baht for a scrip with par value 0.10 baht! And airline business too!

[soi41]

3.70 baht for a scrip with par value 0.10 baht! And airline business too!

You don't have to worry, IPOs in Thailand are only for family and friends . And within the first week of trading, when the stock goes to 5.50-6.00 all the big guys will take their profit and leaving all the retailinvestors wondering, what happened when the price is 1.50 (still expensive!)

[Payboy]

3.70 baht for a scrip with par value 0.10 baht! And airline business too!

You don't have to worry, IPOs in Thailand are only for family and friends . And within the first week of trading, when the stock goes to 5.50-6.00 all the big guys will take their profit and leaving all the retailinvestors wondering, what happened when the price is 1.50 (still expensive!)

Sort of like Facebook.

[sscsamui]

Why invest in the sh-tyest airlines in South East Asia....